Equity Analysis /

Grupo Mexico: Flash: Agreement reached to acquire Planigrupo

  • GMexico reached an agreement to acquire the real estate company Planigrupo for MXN ~4.7 billion through a takeover bid

  • Planigrupo is a company focused on shopping malls with 47 years of experience that owns 36 properties in Mexico

  • Neutral implication, and the diversification of the infrastructure division will have to be analyzed in greater detail

Marissa Garza Ostos
Marissa Garza Ostos

Head of Equity Research

Jose Itzamna Espitia Hernandez
Jose Itzamna Espitia Hernandez

Senior Equity Research Analyst, Infrastructure, Materials and Transportation

8 September 2022
Published byBanorte

Grupo Mexico, through its Infrastructure Division (México Proyectos y Desarrollos, S.A. de C.V.) informed that it has reached an agreement to acquire the real estate company Planigrupo, which will be executed through a takeover bid for 100% of the company’s capital stock at a price of MXN 14.20 per share (-17.0% vs. the latest quotation) which results in an amount of  MXN ~4.7 billion ($235.6 million at a MXN 19.95 per dollar), equivalent to ~0.79% of GMexico's market capitalization at the closing price on September 2, 2022. Based on the data provided in the press release, and Planigrupo's public information, and considering a net debt of MXN 6.2 billion, the company would be paying an FV/EBITDA multiple of 12.0x vs. current of 13.0x, which represents a discount of 7.8%.

The transaction is subject to corporate and regulatory approvals from the National Banking and Securities Commission (CNBV) and the Federal Economic Competition Commission (COFECE).

Planigrupo is a company with 47 years of experience in the design, construction, marketing, and management of shopping malls in Mexico. It currently has 36 properties in 18 states in the country.

Neutral implication: Although for Grupo Mexico this is a strategic investment for its Infrastructure Division, the diversification of the business will have to be analyzed in greater detail, remembering that as of 2Q22 this segment only represents 5.3% of total sales and 4.4% of consolidated EBITDA. For the time being, in our opinion, it should have a neutral impact on the company's valuation, as this acquisition is not very representative, since Planigrupo's revenues and EBITDA represent 0.6% and 0.9%, respectively, of GMexico's total figures.