Mexican companies are spinning off sports, gambling and cell-tower businesses in a bid to revive depressed stock prices, with more such deals likely in the coming months.
Mexican telecommunications giant America Movil kicked off the trend late last year when its shareholders approved the spinoff of its cell tower business. Conglomerate Alfa did the same, with its investors approving a plan in July to distribute its stake in subsidiary Axtel to existing Alfa shareholders.
That plan followed a previous failed effort to sell Axtel outright.
Then, late last month, broadcaster Televisa, whose shares have plunged more than 40% so far this year, pitched a plan to spin off its sports and gaming operations, arguing that the move would cut corporate expenses.