Shares of Cementos Mexicanos de Latinoamérica (Cemex Latam) fell 22.18% on the Colombian stock exchange. According to press reports, the directors of the subsidiary Cementos Mexicanos (Cemex) are involved in a corruption case.
The above, presented by Cemex, a holding company listed on the Mexican Stock Exchange, decreased by 5.23% in its securities, reaching 9.94 pesos to 9.42 pesos per share.
The above is equivalent to Monterrey, the loss of capitalization of 7,573 million. Pesos, which represents a fall in dollars of 301 million. Dollars.
For its part, the subsidiary Cemex Latam, which operates in Colombia, El Salvador, Honduras, Guatemala, among other countries, lost capitalization in the amount of 659.237 million Colombian pesos, which represents a loss of 209 million Pesos. dollars.
“Some news on corruption was published in Colombia today by some Cemex officials who may have paid bribes to various government agents to get contracts inside the country, although this may be from other countries,” said Fernando Bolaños Sapien, analyst at the Monex Casa Stock Exchange. de Bolsa.
He added that: “the issuer has already been investigated by the US Securities and Exchange Commission (SEC) to determine whether any violation of US law has been met; the law of corrupt practices abroad. "
Even the analyst stressed in his report published in the afternoon that Cemex, a cement company that operates in countries such as the United Kingdom, France, Egypt, Germany and Mexico, among other countries, can be re-authorized.
Cemex was investigated by the SEC as to whether any violation of US law was carried out. Although Cemex Latam has already been fined by the authorities of Colombia for $ 25 million to fix the prices for gray cement.
However, the specialist did not change the target price of the names of one of the largest cement companies in the world and expects that by the end of 2019 it will reach 14.7 pesos per share, which will mean a 53.4 percent rebound.
The consensus of analysts who follow the issuer in the Mexican market has a target price of 16.37 pesos per unit, which will increase by 73.78% for 2019. During the year, Cemex pawns recorded a fall of 35.92 percent.
Colombia is not very appropriate in terms of generating income from the Cemex holding, since in 2017 it accounted for only 4.1% of total revenues and 4.5% of EBITDA, but the share of Cemex was dragged by its subsidiary.
There will be no financial consequences, but investigations are currently being conducted on former employees of the company, which may cause volatility in the price of shares, said Benjamin Alvarez, an analyst at CIBanco Casa de Bolsa.
Ramon Ortiz, an analyst at Actinver Casa de Bolsa, said that the investigation began in 2016, which led to various investigations carried out abroad, which were submitted to the market and are continuing.
The specialist emphasized in the report that he was not aware of the partial or final resolution of the issue or the amount of the fine, not having the confidence that this could happen. Actinver recommends purchasing this promotion with a target price of 13 pesos by the end of 2019.
Cemex Latam has a production capacity of 7.6 million tons, has 88 concrete plants, 17 quarries and a total of 4,297 employees in the Latin American region.