- Defaulted builder’s shares increased by as much as 25%
- Company joins Mota-Engil in Mexico City’s new airport proposal
Empresas ICA SAB, the Mexican builder that defaulted on $1.35 billion in bonds last year, soared on plans to bid for work at a new airport with Portuguese construction company Mota-Engil SGPS SA.
The shares surged 19 percent to 2.70 pesos in Mexico City on Thursday, the most since June 20, as trading resumed after a rally triggered a temporary halt.
The proposal is among 18 that Mexico City’s new airport group received for contracts to build a runway. ICA’s proposal comes as the Mexican builder seeks to recover from the nation’s biggest corporate default in at least 20 years. Analysts have pointed to the capital’s $10 billion airport project as a chance for ICA to replenish its finances.
"The positive is that that they’re still alive, that the company is still operating and has the chance of getting a big contract," said Carlos Legaspy, a money manager at InSight Securities Inc. in Highland Park, Illinois, which holds ICA assets. However, ICA’s finances remain troubled, hurting its chances of winning the contract, he said.
ICA is teaming up with Mota Engil, Constructora de Infraestructura, Constructora el Cajon, Impulsora de Desarrollo Integral and Jaguar Ingenieros Constructores. Another consortium that seeks to bid on the runway includes Billionaire Carlos Slim’s Operadora Cicsa, Constructora y Edificadora Gia+A, Promotora y Desarolladora Mexicana and Peninsular Cia. Constructora.