It took less than two weeks for OHL Mexico SAB’s parent company to clear it of wrongdoing in a toll road probe. Investors aren’t sold that the scandal has passed.
The Mexican unit’s shares increased 0.8 percent Wednesday after Madrid-based Obrascon Huarte Lain SA said Ernst & Young LLP found no irregularities in its administration of the Viaducto Elevado Bicentenario concession.
The rebound did little to recover the 22 percent loss in the stock that followed the publication on YouTube of recordings purportedly showing executives discussing how to trick state officials into approving toll increases. OHL Mexico still faces investigations by federal securities regulators as well as the State of Mexico, the regional government overseeing the concession.
“There’s a feeling among investors that we can’t rule out sanctions” from the authorities, said Marco Medina, an analyst at Casa de Bolsa Ve Por Mas. “That could be generating some volatility in the shares even though today’s report is an advance for the company.”
According to the Ernst & Young report, which was included in a Spanish regulatory filing, OHL Mexico fulfilled the concession terms faithfully. The firm also found that there was no economic damage to the State of Mexico.