Salfacorp Surges as Stock Selloff Spoils Breakup: Santiago Mover
Salfacorp SA (SALFACOR), Chile’s largest engineering and construction company, jumped the most in almost six years after its board canceled a plan to separate into two smaller units amid an emerging-market selloff.
Salfacorp surged 12 percent to 675 pesos at 4:14 p.m. in Santiago, the biggest increase on a closing basis since September 2007. It was the biggest gainer on Chile’s benchmark Ipsa index, which advanced 1.1 percent.
The board canceled the breakup at a meeting today because of “conditions in global and domestic markets,” according to a regulatory filing. Santiago-based Salfacorp in March had announced a plan to split off its real-estate investment unit from its engineering and construction company.
“The market had punished Salfacorp’s stock price as investors felt they would end up holding stakes in two smaller companies,” Javier Gunther, an analyst at Santiago-based brokerage IM Trust, said in a phone interview. The shares had tumbled 38 percent this year through yesterday, the worst performance on the Ipsa.
Under the company’s breakup plan, investors would have received shares in both units, which would have been separately listed on the Santiago exchange.
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