Bimbo looks to early October for share offering

by Josh Sosland
Share This:
Search for similar articles by keyword: [Bakery], [Grupo Bimbo]

MEXICO CITY — A proposed secondary offering of about $700 million of Grupo Bimbo S.A.B. de C.V. common stock will take place in early October “if the conditions are there,” a company spokesperson said Sept. 20.

Bimbo shareholders, at a general extraordinary meeting Sept. 18, approved a management plan to offer 201,250,000 series A shares. With a 15% overallotment option, as many as 231,437,500 shares may be sold, equating to about 5% of the outstanding shares as of Dec. 31, 2013.

Responding to a query from Milling & Baking News, Bimbo explained its decision to sell additional shares.

“The rationale behind the stock offering is to strengthen the capital structure adding further financial flexibility and the immediate leverage reduction,” the company said.

Long-term debt in Grupo Bimbo’s most recent financial report was listed at 59,123 million pesos ($4,478 million), up 83% from 32,332 million pesos as of Dec. 31, 2013.

The debt increase followed the acquisition of Canada Bread by Grupo Bimbo earlier this year in a transaction valued at about $1,663 million.

Bimbo said global coordinators of the offering will be Citigroup and HSBC Bank International. Joint bookrunners will be Bank of America and JPMorgan Chase. Local joint bookrunners will be BBVA Bancomer and Banco Santander.
Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.

 

 


The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.