The company in the food sector, Lala Group, has lost 19,050 million pesos in capitalization value since joining the Mexican stock exchange (BMW) on October 16, 2013, to date, since it has gone from 58,095 to 39,045 million pesos.
Lala Group entered the Stock Exchange when its shares were trading at a level of 27.50 pesos each and are currently at 15.77 pesos per title, which reflects a decrease of 42.65% over nine years registered in said stock market.
Heriberto Sandoval, an independent analyst at Increase Capital, explained that “Lala’s main objective when making her Initial Public Offering was to obtain resources to capitalize, and she achieved it.”
“Once the shares fell sharply from their initial price, since the market never recognized the true value of the company, it was an attractive opportunity to invest and acquire all of its outstanding shares, so the shareholders approved the cancellation of the company. its shares on the stock market,” Sandoval said.
Its prices have reached a minimum price of 10.22 pesos per paper, this represents one of the effects derived from the covid-19 pandemic to the company, which still prevail, since their titles are below their pre-pandemic levels 3.49 percent.
While its highest level was reached on April 1, 2016, its shares were at a price of 47.22 pesos.
According to the specialist, since its purchase in 2016 of Laguna Dairy, a dairy products company in the United States and Vigor, a dairy producer in Brazil, in 2017, Lala faced heavy punishment to its share price as several analysts and investors felt that the amounts of the purchases increased its level of debt too much and reduced the company’s operating cash flow.
Despite the different strategies implemented Lala to continue growing the market did not recognize them in the price of its shares, this led the partners of the trust that controls the company to make the decision to delist the company from the Stock market.
The company said in a statement to the BMW that the cancellation of the registration of the shares representing the capital stock of the BMV was approved, with a quorum of 98.9% of the outstanding shares in the National Securities Registry, which is maintained by the National Banking and Securities Commission (CNBV) the delisting of the firm’s titles was achieved, which intends to acquire up to all of the outstanding shares of the Company’s capital stock owned by the general investing public.
“The Offeror expects to carry out an offer for a price in pesos, in cash per share, equivalent to the price offered in the takeover bid that concluded during September 2021,” the statement read.
Lala Group It was born from the credit union of milk producers in Torreón in 1949; its products range from milk, yogurts, creams and cheeses to meat and butter, among others. The firm has a presence in Central America, Brazil and the United States, has 31 factories, 173 distribution centers and more than 40,000 employees.
Lala is not the only station that has sought its delisting from the BMW, also the energy sector company IEnova, the towel manufacturer station, Hilasal, as well as Bio Papel in 2020, a paper and cardboard packaging manufacturer, and Farmacias Benavides in the same year.