Aug. 27 (Bloomberg) -- Grupo Mexico SAB, billionaire German Larrea’s holding company, is delaying a planned initial public offering in London of its mining unit, according to three people with direct knowledge of the decision.
Grupo Mexico tabled the offering of the unit, Americas Mining, after the price of copper and emerging-market stocks fell, said the people, who asked not to be named because they weren’t authorized to comment publicly. An IPO is unlikely until at least next year, according to the people.
Chief Financial Officer Daniel Muniz had said March 21 that the company may sell as much as 25 percent of Americas Mining in a share sale in London. The share sale would be a first step in listing the individual parts of the conglomerate, which has a market value of 310.5 billion pesos ($23.5 billion). Grupo Mexico encompasses the country’s biggest mining company along with railroads, highway construction, oil-rig leasing and a stake in an airport operator.
Muniz didn’t return an e-mail and call requesting comment.
Copper futures have fallen 9 percent this year to $3.3225 a pound on the Comex in New York, while the MSCI Emerging Markets Index has dropped 13 percent this year.
Muniz had said in March that by listing each of its divisions the company would “create shareholder value.” He said the company was “practically ready” to move ahead with the strategy, with sales possible as soon as this year.
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