The enormous Spanish construction group OHL has officially confirmed that it is in the preliminary stage of talking and negotiating with an anonymous third party investment fund to create and solidify a joint bid which will result in the privatization of its Mexican unit. This unnamed third party could potentially be the Australian fund management firm IFM. This firm has existing joint operations in the country with OHL and thus this decision would make logical and financial sense.
This partnership and joint bid was not confirmed as a spokesperson for IFM did not comment on these speculations that first arose through information provided by. Spain’s Expansion newspaper.
OHL currently has a 56 percent stake in OHL Mexico and has made it clear that it will not be purchasing any additional shares or equity in its Mexican subsidiary. This came from a statement made by the group to Spain’s stock market regulator.
The following statement was made by a source familiar with and on the inside of discussions: “OHL has agreed with IFM to look into a buyout offer for OHL Mexico. IFM would put the money in and OHL would not participate in the offer.” The source indicated that OHL Mexico is seeking to maintain its current stake.
Perhaps this action comes after the setbacks and hardships faced by its Mexican Subsidiary in the recent months. This includes a 4 million dollar fine received earlier this year as a result of Mexican regulators uncovering inadequacies in its financial reporting, however, the company did not receive any attention or heat for fraud.In addition, the parent company (OHL) has been forced to address margin calls on debt when shares in the Mexican subsidiary tumbled causing a sale of 7 percent stake in the infrastructure firm Abertis. This involved a repay guarantee issued by OHL Mexican.