Citi reported Thursday that had declined the offer from Grupo México and that he firmly believed that the sale of 25% of Banamex to Mexican businessman Fernando Chico Pardo, announced in late September, and the planned initial public offering (IPO) will allow him to complete the divestment “in a responsible manner and maximize value for shareholders.”
“Grupo México regrets this decision, since its offer maximized the benefit for Citi shareholders and ensured the repositioning of Banamex as a leading Mexican bank capable of giving a strong boost to our country’s economy,” the company said in a statement.
German Larrea had proposed buying 100% of Banamex shares. In a statement, the ‘copper king’ reported last Friday that he was looking to buy the 25% stake agreed with the bank from businessman Fernando Chico Pardo.
If Grupo México obtained 100% of the bank, its plan was to keep 60% of the total value of the investment while the remaining 40% would be offered to other private investors and Afores, with whom it had already agreed on the investment.
The decision to buy the bank had a poor response from shareholders: Grupo México lost in market value the equivalent of what it would pay for Banamex. Stocks were punished on Monday and dragged down the Mexican Stock Market.
With information from Reuters
