There is speculation that Mexico“s Vitro may be considering selling its 49% stake in Cydsa, one of Mexico“s leading petrochemical and textile companies.
Cydsa“s stock has appreciated by 43% over …
There is speculation that Mexico“s Vitro may be considering selling its 49% stake in Cydsa, one of Mexico“s leading petrochemical and textile companies. Cydsa“s stock has appreciated by 43% over the last year despite forecasts of modest sales growth. This has led to speculation that an acquisition attempt may be imminent. Vitro, could clearly improve its balance sheet by disposing of its stake in Cydsa, which has a market capitalisation of US$ 313 million. Vitro dedicates almost two-thirds of its cash flow to interest on US$ 1.8 billion of debt, particularly burdensome at a time when Vitro“s near-monopoly in the Mexican glass market is being challenged by Saint-Gobain of France. Until recently, Vitro has refused to contemplate selling Cydsa. But the company now appears to be softening its line. “No decision has yet been made regarding Cydsa,” said Mr. Hiram Peon, a financial spokesman for Vitro.