Aeroportuario del Sureste, S.A.B. de C.V. (ASR) is planning a secondary equity offering and hence has filed a registration with the U.S. Securities and Exchange Commission.
JMEX B.V. plans to sell its 16.0% stake in Grupo Aeroportuario del Sureste by offering 43.6 million shares for sale either directly or in the form of ADSs, where underwriters will have the option to buy an additional 4.4 million shares to cover over-allotments. Each ADS is equivalent to ten common shares.
JMEX B.V. is a private company with limited liability incorporated under the laws of The Netherlands.
Cash and marketable securities at the end of the second quarter of fiscal 2010 reduced to MXN$590.69 million, from MXN$973.32 million at the end of the year-ago quarter, representing a decrease of 39.31%.
However, passenger traffic grew 26.8% year over year with an increase of 37.8% in international traffic and 13.8% in domestic traffic. We reiterate our Outperform recommendation on the ADS.
For the worldwide airline industry, 2009 was one of the toughest years, but the scenario has improved. However, it will take years to recover the losses incurred in 2008 and 2009. International Air Transport Association (IATA) estimates the losses to need around two years to recover.
Oil prices have also come down to $82 per barrel from $150 per barrel in 2008 but we do not expect a significant recovery in the aviation industry even in 2010. Thus, our short-term rating has been downgraded to Hold, equivalent to a Zacks #3 Rank.
GRUPO AEROP-ADR (ASR): Free Stock Analysis Report
Zacks Investment Research
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