THREE FIRMS SET TO WIN IN THE IPC. (EXCÉLSIOR 2)

Just one month before the close of the year, Alpek, ICA and ICH could be the companies incurring the biggest market losses, whereas GAP,Grumaand Ienova are likely to be the big winners. The former are set to see a 28% drop in their share price, while the latter firms will see a rise of up to 60%...

DOLLAR TO HIT MEXICAN MULTINATIONALS. (REFORMA 1)

At the end of this year and in early 2015, the rise in the dollar is set to affect Mexican companies with significant foreign market operations, as well as firms that import supplies from the United States, as the country’s currency depreciates against the dollar. Fernando Bolaños, Manufacturing and Mining Sector Analyst at Grupo Financiero Monex, explained that it is not only the Mexican peso that is depreciating against the dollar, but this is also being experienced by the euro and the currencies of many emerging economies, including Latin American countries. José Isaac Velasco, Economist at Ve Por Más bank, indicated that some manufacturing sectors, such as auto parts, and equipment and machinery, would benefit through a more expensive exchange rate, since they export much of their production output, and bill in US dollars. One of these firms is Gruma, which sells a large volume of its products in the United States.

TENDENCIES AND TRENDS (EL ECONOMISTA 7) GRUMA.

Barclays raised its TP for shares in the corn flour production company from MXN 150 to 161, recommending an equal-weighting strategy, which would suggest a 5% increase over the current MXN 153.32 price.

MONTERREY INDEX, LESS PROFITABLE THAN THE IPC. (EL ECONOMISTA 2)

During the month of November, the Monterrey Index (Índice Regio) fell by 2.47%, compared with the 1.86% decrease suffered by IPC of the Mexican Stock Exchange. So far this year, the Monterrey Index has risen by 3.38%, compared to the 3.42% increase in the IPC, according to analysis from Monex. It adds that the issuers on this list with the year’s largest returns are Cydsa, Gruma and Minera Autlán, with increases of 60%, 55.2% and 55.1% respectively... According to the report, the best-performing issuers in the Monterrey Index over the past 12 months have been Autlán, Gruma and Cydsa, with increases of 80.2%, 67.5% and 61.4%, respectively.

BAD START TO THE WEEK FOR THE MEXICAN STOCK EXCHANGE. (EL NORTE 0)

On Tuesday of this week, the IPC was down 384 points, in contrast to the new record high of its United States equivalent, the Dow Jones, thus exacerbating the 800 point fall suffered by the index yesterday. On the other hand, Gruma, Banregio and Banorte all had increases in their share price of 3.93%, 0.8% and 0.8% respectively.

JESÚS RANGEL/TUG-OF-WAR (MILENIO DIARIO 28)

Meeting Room. The President and CEO of Grupo Industrial Maseca, Juan Antonio González Moreno, knows that innovation is the road of the future, and in the next few days is due to announce a new star product: corn flour for snacks: or more specifically, flour for making tlacoyos, sopes and other traditional Mexican cuisine staples...

SPANISH INVESTMENT ‘TAKES MEXICO BY STORM’. (EL UNIVERSAL 5)

Big acquisitions. A report on Flows of Foreign Direct Investment published by the Spanish Finance and Antitrust Ministry indicated that 2013 was a year of great success for Mexican companies in the Iberian market. Gruma. The Mexican giant acquired Spanish corn and wheat retailer Mexifoods for US$15 million.

TENDENCIES AND TRENDS (EL ECONOMISTA 7)GRUMA

The firm’s stock capitalization value closed at MXN 66.747 billion on Friday. Its share price was up by 3.4% at the close of October, with this trend continuing into November, where it closed at 4.4%.

 DEBT ISSUE OF MXN 24.5 BILLION. (EL ECONOMISTA 2-6) (EL UNIVERSAL 4) (LA JORNADA cp-31) (EXCÉLSIOR 3) (EL FINANCIERO 41) (24 HORAS 18) (EL SOL DE MÉXICO 1-2)

In a move that exceeded the acceptance expectations of the market seven times over,Gruma completed the issue of a US$400 million bond in senior notes expiring in 2014 at a rate of 4.875%. The funds obtained from the placement, underwritten by Goldman Sachs and Santander, will be used for the repurchasing of US$300 million of perpetuities in circulation since 2004, generating an annual savings of US$8.6 million in interest repayments and 287.5 basis points for the company. Another portion of the funds obtained will be used to refinance bank debt, with any remainder being put to various corporate ends. The unsecured bond placed by the firm is issued for a 10-year term under conditions similar to those of an investment bond.

INVESTMENT. (Milenio Daily 30) Corn bond.

Gruma has completed the placement of a US$400 million bond in senior notes expiring in 2024 at a rate of 4.875%, payable bi-yearly. The transaction exceeded the acceptance expectations of the market seven times over. 

JESÚS RANGEL/TUG-OF-WAR (MILENIO DIARIO 30) Meeting Room…

The US$400 million unsecured bond placed byGrumawill be used to repurchase 300 million perpetuities, for savings of US$8.6 million.

IRASEMA ANDRÉS DAGNINI/GOOD ACCOUNTS (LA RAZÓN 24)

GRUMA debt placement: The multinational has placed a 10-year bond of US$400 million in senior unsecured notes, payable bi-yearly at a rate of 4.875%...GRUMA has achieved an international local currency rating of “BBB-” from Fitch Ratings

GRUMA COMPLETES SALE OF THE WHEAT FLOUR BUSINESS IN MEXICO (EL UNIVERSAL 1-2) (REFORMA 1) (LA JORNADA 30) (EXCÉLSIOR 3) (EL FINANCIERO 34) (EL NORTE 0)

Tortilla producer Gruma has completed the sale of its wheat flour operations in Mexico for a price of approximately US$260 million, which has already been paid by Grupo Trimex in full. “Grupo Trimex has acquired the entirety of shares in Molinera de México, as well as the wheat flour production assets of the Grupo Industrial Maseca (GIMSA) subsidiary”, the company announced in a press release.

BÁRBARA ANDERSON: GRUMA PLACES A US$400 MILLION BOND IN SENIOR NOTES, EXPIRING IN 2014.  (MILENIO NOTICIAS TV (4:00 to 8:00 PM) )

MAURICIO FLORES/PEOPLE BEHIND THE MONEY (LA RAZÓN 24)

Your tortilla producer.Gruma yesterday completed the sale of its wheat flour assets to Grupo Trimex. The company received US$260 million, which it will use for debt repayment; last Friday, the firm restructured its debt by issuing a US$400 million bond for savings in interest repayments of US$8.6 million a year. The move was driven by Juan González Moreno.

IRASEMA ANDRÉS DAGNINI/CLEARACCOUNTS (LA RAZÓN 25)

Trimex and GRUMA seal the deal. The companies have finally completed the sale of Molinera de México and Grupo Industrial Maseca. The transaction has broughtGruma revenue of approximately US$260 million.

JAIME NÚÑEZ/CAPITAL NAMES (CAPITAL DE MÉXICO 6)

This year’s priorities for Gruma, led by Juan González Moreno, included the sale of its wheat flour operations in Mexico, which was completed this week with the purchase by Grupo Trimex of the entirety of shares in Molinera de México, as well as the purchase of all assets of the Grupo Industrial Maseca subsidiary. The total price of the transaction was US$260 million. 

GEORGINA HOWARD / FINANCIAL OUTLOOK. (EL SOL DE MÉXICO 5)

Take note…. Transaction complete.Gruma has completed the sale of its wheat flour operations in Mexico to Grupo Trimex for US$260 million... The funds obtained from the sale will mainly be used for the repayment of debt, thus strengthening the financial structure of the multinational.

CAPTAINS (REFORMA 3) Juan González Moreno.

The leader ofGrumatoday laid the first stone of a tortilla, sandwich wrap and corn chip production plant with an annual 30,000 ton capacity, where the company will invest US$50 million over the next two years. It will start operations in late 2015.

TENDENCIES AND TRENDS. (EL ECONOMISTA 7) 

GRUMA The company is among a handful of Mexican firms to have made gains during 2014, with its share price having increased by over 40% due to its profitability and its value creation strategy that began two years ago.

GRUMA TO DOUBLE PRODUCTION IN RUSSIA (EXCÉLSIOR 1-2) (EL ECONOMISTA 25) (MILENIO DIARIO 30) (EL FINANCIERO 34) (LA JORNADA 25) (EL SOL DE MÉXICO 1-3) (EL UNIVERSAL 4)  (LA RAZÓN 20) (REFORMA 1)

Corn products and flour producer Gruma will invest US$50 million in a new tortilla plant in Russia, which will double its production in the market, Juan González Moreno, President of the company, has announced. The new factory will have an installed production capacity of 31,500 metric tons per year, and will provide employment to 250 people, producing wheat and corn tortillas, sandwich wraps and corn chips. “Over the next two years,Gruma will invest US$50 million in its new Russian plant, which will be of the highest quality and highest food safety standards in the industry”, said Juan González Moreno, President and CEO of the company. 

ROBERTO AGUILAR / CORPORATIONS HOUR. (CAPITAL DE MÉXICO 4) 

Budem zdorovi! Gruma, led by Juan González Moreno, continues to pursue the internationalization of its operations, as it is currently due to invest US$50 million over the next two years in its current target, Russia, where it will build a new plant.

IRASEMA ANDRÉS DAGNINI / GOOD ACCOUNTS. (LA RAZÓN 22)

Gruma is set to double its production. Juan González Moreno, President and CEO of Gruma, reaffirmed the company’s growth strategy on Monday after laying the first foundation stone at the technology park in the industrial city of Stupino, Moscow Oblast, where the firm will invest US$50 million in the construction of a wheat and corn tortilla, sandwich wrap and corn chip production plant. . 

MAURICIO FLORES/PEOPLE BEHIND THE MONEY (LA RAZÓN 23) Tortillinstroika.

New developments see Juan González Moreno resuming Gruma’s international expansion by providing an investment of US$50 million in a flour plant on the outskirts of Moscow for the production of corn and wheat tortillas, flour, corn chips and sandwich wraps. This comes in the wake of a 15% annual increase in the consumption of tortillas, salsas and other Mexican cuisine staples in the country.

ALICIA SALGADO: GRUMA TO INVEST US$50 MILLION TO BUILD A PLANT IN RUSSIA. (ENFOQUE (MATUTINO) ) (EN LOS TIEMPOS DE LA RADIO ) (LA RED (MATUTINO) ) 

Alicia Salgado: Over the next two years, corn flour manufacturerGrumawill invest US$50 million to build a new plant in Russia. Yesterday, none other that the company’s President and CEO,Juan González Moreno, was in attendance at the laying of the first cornerstone stone in the city of Stupino Quadrat, in Moscow Oblast. He said thatGrumawill continue its international investment process...

GRUMA TO INVEST US$50 MILLION TO BUILD A PLANT IN RUSSIA (MATUTINO EXPRESS TV) .  (MILENIO NOTICIAS (8:00 AM to 12:00 PM) )

Eduardo Saint Martín: Over the coming two years, corn flour manufacturer Gruma will invest US$50 million to build a new plant in Russia. The CEO of the company said that the complex located in an industrial park in the city of Stupino Quadrat, Moscow Oblast, will have the capacity to produce 31,500 tons annually. He also said that the plant will provide employment for 250 people, producing wheat tortillas, sandwich wraps, corn tortillas and corn chips. He explained that the group’s Russian market sales have been growing by more than 15% per year, thanks to its products being well received in the restaurant and self-service industries...

WHO HAD THE BEST BUSINESS? (MUNDO EJECUTIVO 4-96-102)

The curtain has fallen on 2014, and although the Mexican economy was lethargic for much of the year due to the effects of tax reform, this climate was leveraged by some companies, which continued their international growth and prepared for the oncoming financial, telecommunications and energy reforms, which promises to change the face of Mexico towards promoting a more competitive environment. If globalizaiton has seduced large-scale enterprises such as Cemex, Gruma and FEMSA in recent years, it is also encouraging smaller companies to broaden their horizons. This is true of passenger transport group ADO, which has completed the purchase of Spanish bus operator Avanza, which becomes its first international venture.

TOP 7/WINNERS ON THE MEXICAN STOCK EXCHANGE IN 2014(EXCÉLSIOR 1-2)

Winners on the Mexican Stock Exchange in 2014. Juan González Moreno’s firm is the highest yielding company on the Stock Exchange this year, with its share price surging by 46.59%, from MXN 97.80 at the end of 2013 to MXN 150.50 yesterday. This growth is largely due to the profitability improvement measures implemented by González Moreno. Gruma has also sought to reduce its debt while investing in regions that it considers as strategic. As proof thereof, on June 10th last year Gruma announced the sale of its wheat operations to Trimex in a transaction valued at US$200 million. On the same date, the company stated that the resources received would be allocated to the repayment of debt by Gruma and Grupo Industrial Maseca, whereas in terms of investment, the firm this month announced that it will invest US$50 million in a tortilla plant in Russia.

Mexican Stock Exchange: ANOTHER YEAR GOES BY EMPTY-HANDED (EXCÉLSIOR 1-6)

The year 2014, the second of the current six-year presidential term, has come to an end, a year that was supposed to spark a new political and economic era for Mexico, when investors were supposed to be eyeing up the huge opportunities to leverage what seemed the most attractive emerging economy against a background of uncertainty in Europe and stagnancy in developed countries such as the United States... Gruma  appears near the top of the table of highest yielding companies, with a growth of 54.03%.

UP AND DOWN MARKET (FORBES MÉXICO 14)

Winners. Juan Antonio González Moreno +3.39% Gruma’s market value: MXN 64.810 billion. Gruma’s US$400 million share issue in November had a positive effect on its share price. The company plans to use these resources to refinance its existing debt.

FEW SHARE WITH DOUBLE-FIGURE YIELDS. (EL FINANCIERO PP-8)

Just 11 share issuers on the Mexican Stock Exchange IPC have managed to stave off the wave of red numbers flooding the market by achieving profits in double figures in 2014. As the year prepares to draw to a close, the share prices of Gruma, iEnova, Gap, Televisa, Elektra, Gentera, Asur and AC have recorded double-figure yields this year, thus staving odd the declining trend that has dominated the local market... Gruma, with growth of 54.24%...

THE REGIONS BIGGEST MERGERS AND BUYOUTS THIS YEAR (AMÉRICAECONOMÍA 42-50)

Activity in terms of mergers and buyouts in Latin America is firmly on the decline. For the second consecutive year, the value of the 50 biggest transactions has fallen by double figures. Transfers of ownership totaled US$39.994 billion, 26.3% down on last year, and just half of the US$77.528 billion figure recorded in 2012... In June, Grupo Trimex from Mexico acquired Molinera de México from Gruma. The latter firm is the world’s largest corn flour and tortilla producer, which planned to use the resources obtained to repay debt.

AIRPORT SHARES FLYING HIGH (EL NORTE 0)

Airport sector companies quoted on the IPC where the clear winners in the race to accumulate 2014’s highest yields on the Prices and Quotations Index of the Mexican Stock Exchange. Individually, Grupo Aeroportuario del Pacífico was the IPC’s second highest yielding enterprise during 2014, second only behind Gruma, whose share price grew by 55.8% during the same period.

THE FIVE BIGGEST WINNERS ON THE MEXICAN STOCK EXCHANGE IN 2014. (EL FINANCIERO pp-25)

Just a day before 2014 draws to a close, the Mexican Stock Exchange’s key indicator has grown by just 0.7%, affected by the volatile climate of the markets as a result of the falling oil prices during the last quarter. The five issuers on the Mexican Stock Exchange’s IPC with the highest yields during the year that is drawing to a close were Gruma, with 54% growth; followed by IEnova, at 42%; Grupo Aeroportuario del Pacífico (GAP), at 36%; Elektra, at 29%; and Grupo Televisa, at 26%. José María Flores, a consumer sector expert at Ve por Más, explained that Gruma was rewarded throughout the year for its costs and expenditure savings strategy...