SIM NEWS OUT
DJ Mexico's ICH Approves Capital Increase, 3-for-1 Shr Split
01/12/2005
Dow Jones News Services
(Copyright © 2005 Dow Jones & Company, Inc.)
MEXICO CITY (Dow Jones)--Mexican steel company Industrias CH SA (ICH.MX) said Wednesday that its shareholders approved a capital increase for up to 1.61 billion pesos ($1=MXN11.1680) and a three-for-one share split.
The company, whose main unit is Grupo Simec SA (SIMEC.MX), said in a filing with the Mexican Stock Exchange that it plans to issue up to 167 million shares in Mexico, the U.S., and possibly in other markets, representing 31.8% of the company's resulting equity.
Price and date, as well as financial agents for the share offering, are to be determined. Existing shareholders waived their pre-emptive rights to the new shares, the company added.
ICH B shares trading on the Mexican Stock Exchange were down 2.9% to MXN85.45 just before the close Wednesday. Simec B shares, which soared last year as investors bought into the steel market recovery, were down 21% to MXN62.
Last year, Industrias CH expanded its capacity by 30% with the acquisition through Simec of the Mexican assets of Spain's Corporacion Sidenor.
The company - which produces steel and steel products, including line pipe - had sales of MXN1.85 billion in the third quarter of last year, up from MXN1.32 billion in the like 2003 period.
Years Teach Us, Which Days Never Knew
