Genomma Lab Internacional SAB rose the most in three months after agreeing to sell a controlling stake in a distribution unit for 1.35 billion pesos ($88 million).
Shares of Mexico’s biggest seller of over-the-counter medication led gains on the benchmark IPC index after the company said in a regulatory filing that it may use proceeds of the sale of Grupo Comercial e Industrial Marzam SAPI to a Dutch private equity fund to reduce debt and “improve shareholder value.” Investors will embrace the deal because it will help increase Genomma’s share buyback program, according to Sofia Robles, an analyst at Intercam Casa de Bolsa SA in Mexico City.
Marzam distributes medicine and personal-care items in Mexico on behalf of manufacturers including Genomma, which first bought a 50 percent stake in the company in June 2014 before taking complete control in October of that year.
“Also, they are selling an acquisition that the market didn’t understand from the beginning because it does not correspond with the core business,” Robles wrote in an e-mailed response to questions.
Genomma increased 7.8 percent to 16.52 pesos a share at 12:41 p.m. in Mexico City, posting the biggest advance since March 11. The shares have fallen 41 percent this year amid declining domestic sales, the worst performance on the IPC.
Mexico City-based Genomma said it will initially sell a 50 percent stake plus one share in Marzam to Moench Cooperatief UA, with the possibility of further divestment.