**Primary Article: Elektra’s Dramatic Fall on the Mexican Stock Exchange**
On December 2, 2024, Ricardo Salinas Pliego, a prominent Mexican businessman, experienced a significant financial setback. The value of shares in his Grupo Elektra plunged by a substantial 60% on the Mexican Stock Exchange (BMV), resulting in a financial loss of approximately $4 billion, according to a report by a leading business publication. As a consequence of this dramatic decline, Salinas Pliego’s net worth is now estimated at $6.2 billion, dropping him to the fourth spot among Mexico’s wealthiest individuals. Previously, he held the position as the third-richest Mexican, trailing behind Carlos Slim Helú and Germán Larrea Mota Velasco. However, Alejandro Bailleres Gual has now surpassed him.
This development followed a decision by Mexico’s National Banking and Securities Commission (CNBV) to revoke Grupo Elektra’s trading suspension on the BMV. Despite Elektra’s efforts to keep the trading halt in place, the CNBV allowed market operations to proceed. As a result, major stockholders, including investment giants like BlackRock and The Vanguard Group, opted to sell their shares at significantly reduced prices. Shares plummeted from 945 pesos in July 2024 to a mere 355 pesos on December 2, marking the lowest value in eight years.
With over 75% of Grupo Elektra’s shares under his ownership, the fall in stock value significantly impacted Salinas Pliego’s wealth. As reported by a notable financial magazine, his fortune has dwindled from $10.9 billion in April 2024 to $4.6 billion now.
Responding to the situation, Grupo Elektra issued a statement highlighting ongoing legal proceedings that prevent the BMV from trading their shares, despite the CNBV’s actions. The company also cautioned potential investors about the risks of engaging in transactions with these shares, emphasizing potential liabilities.
In a recent announcement, Grupo Elektra revealed its intention to delist from the BMV by December 27, 2024, as part of a privatization strategy allowed by local commercial laws. The decision arose from frustration over the stock exchange’s failure to adequately reflect the company’s true value and benefit its shareholders. The move has reportedly gained the backing of more than 95% of its shareholders. Grupo Elektra stated that this decision will strengthen its commitment to social initiatives and inclusive prosperity, aligning with its corporate vision. Additionally, the company plans to discuss the restructuring of its board of directors to better navigate future challenges.
**Secondary Article: Broader Implications of Elektra’s Market Exit**
In light of Elektra’s announcement to go private, financial analysts are considering the broader implications for the Mexican stock market. Experts suggest that this decision might signal potential shifts in how family-controlled conglomerates operate, emphasizing a preference for retaining full control over their business strategies without public market pressures.
Grupo Elektra’s situation highlights the delicate balance between corporate governance, regulatory decisions, and market dynamics. Some analysts argue that Elektra’s departure from the stock exchange reflects deeper concerns about market transparency and investor confidence in Mexico’s financial regulatory framework.
As BMV faces this significant loss, there are calls for reassessment of policies that could better accommodate and support the interests of listed companies, while maintaining investor protection standards. Elektra’s case may potentially motivate other firms to reevaluate their public trading status, seeking alternatives that better align with their long-term business objectives.
This scenario continues to develop, with market observers closely monitoring how Grupo Elektra’s transition will influence future corporate decisions and the overall landscape of the Mexican economy.