Who is Grupo México Transportes (GMXT)?
Grupo México Transportes (GMXT) is a significant and influential company operating one of Mexico’s most crucial railway systems. It has been listed on the Bolsa Mexicana de Valores (BMV) since 2017. GMXT is part of Grupo México, a prominent conglomerate with interests in mining, transportation, and infrastructure.
GMXT’s Decision to Initiate an OPA
On September 23, GMXT announced an Offer to Purchase (OPA) aiming to exclude 8.9% of its circulating shares from the BMV registration. This move intends to cancel its registration in the National Securities Registry (RNV) and conclude its bourse cycle initiated in 2017.
The Journey to the OPA
GMXT began this journey mid-year. On June 11, the company called for an Extraordinary General Assembly to vote on canceling its registration and delisting from the BMV. The assembly, held on June 27, approved the measure with 97.41% of votes, authorizing GMXT to request authorization from the National Banking and Securities Commission (CNBV) according to Article 108 of the Securities Market Law (LMV).
OPA Terms and Conditions
Article 108 of the LMV requires any company seeking delisting to conduct an OPA offering at least the higher value between market price and book value per share. Additionally, a six-month post-delisting payment security trust must be established to protect minority shareholders.
GMXT set the offer price at 35.99 pesos per share, calculated as the higher value between the average market price (32.72 pesos) and book value (13.68 pesos), plus a 10% premium. This price ensures fair treatment for minority shareholders and represents a slight premium compared to the closing price on September 23 (35.34 pesos).
Impact on the Stock Market and Investors
GMXT’s delisting reflects structural tensions in the stock market. Despite operating a vital railway system and benefiting from nearshoring, GMXT has traded at a discount compared to international peers.
- Valuation Discrepancy: GMXT trades at an EV/EBITDA multiple below 12x, while Union Pacific, Canadian National, and CPKC trade above 12x. This disparity is linked to limited liquidity, less global analyst coverage, unfavorable corporate governance perceptions, and a regulatory framework that doesn’t encourage new listings.
- Lack of IPOs: Since GMXT’s debut in 2017, no significant IPOs have occurred on the BMV. Instead, there has been a surge in delistings: Aeroméxico, Grupo Lala, Grupo Sanborns, Bachoco, Rassini, and BioPappel left the stock exchange in the past five years due to depressed valuations, regulatory burdens, and low liquidity.
For minority investors, the OPA represents their last liquidity window before losing their stock exchange status. Those who don’t participate will remain partners in an unlisted company with limited secondary market liquidity.
For Grupo México, delisting consolidates strategic control over the railway business and provides greater financial and corporate decision-making flexibility, free from public scrutiny. The absence of disclosure requirements inherent to the market will facilitate capital adjustments and long-term investment projects.
Consequences for the Mexican Stock Market
GMXT’s departure, being a large and important issuer, negatively impacts the local stock market. It reduces investment alternatives in logistics and infrastructure sectors, especially as nearshoring increases the relevance of rail transportation.
Although GMXT’s delisting complies with regulations, ensures fair conditions for public investors, and neatly concludes its eight-year bourse period, it sends a strong message to the financial ecosystem. Without profound reforms to enhance liquidity, encourage new listings, and elevate the attractiveness of remaining in the stock exchange, cases like GMXT’s will continue shaping Mexico’s stock market trend.
