Grupo Bimbo prepares for share offering

by Josh Sosland
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MEXICO CITY — Grupo Bimbo S.A.B. de C.V. is convening a general extraordinary meeting of shareholders Sept. 18 to consider a public offering of capital stock to investors in Mexico, the United States and other markets.

Notice of the meeting was announced by the company Aug. 29. In addition to consideration of the stock offering, shareholders will be asked to approve a number of related actions, including an approval of an increase in the fixed portion of the capital stock of the company.

Bimbo’s share price fell after the planned stock offering was announced. After closing at $42.84 per share on Aug. 28, the company’s stock price fell 5.6% to a Sept. 1 close of $40.46 in trading on the Mexican Stock Exchange. The price was still above the $38.85 closing price a year earlier and was about double the $20 price (adjusted for splits) where Bimbo was trading before announcing plans in November 2010 to acquire the fresh bakery business of Sara Lee Corp.

According to the Grupo Bimbo 2013 annual report, six businesses/investment entities held about two thirds of the company’s 4,703,200,000 shares outstanding. Two of these — Normaciel S.A. de C.V. and Promociones Monser S.A. de C.V. — owned 2.3 billion shares, or 49% of the company’s outstanding stock. The two are controlled by the Servitje family. The report said, “To Bimbo’s knowledge… no person exercises control, significant influence or command power (as such concepts are defined in the Securities Market Law) in Bimbo, except for Mr. Daniel Servitje Montull, chairman of the board of directors and chief executive officer.”

The Sept. 18 meeting will be held at 12:30 p.m. at the company’s headquarters, located at Prologacion Paseo de la Reforma No. 10000, Col. Pena Blanca Santa Fe, Distrito Federal.
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