Grupo Mexico OKs offering

At its recent annual meeting, held in Mexico City, Grupo Mexico authorized the issuance of up to 70 million shares of new stock.

Current shareholders can subscribe to the new Series B stock at 50 pesos (or US$5) per share. Shares are now trading on the Mexican Stock Exchange at 38 pesos (US$3.80).

Shares not purchased will go to the company’s treasury and be used for future acquisitions, mergers and debt reduction.

With 630 million shares outstanding, Grupo Mexico it is still considering seeking a listing on the New York Stock Exchange.

The company recently completed a US$2.2-billion takeover of Asarco, a major copper producer.

The acquisition doubled Groupo Mexico’s production to nearly 2 billion lbs. annually.