We've got news, volume and upward movement ... could this be it....
GTR is working to pay of it's debts to turn over & start a new leaf
Mexico's Tribasa Sells Stake in Ferrosur Railroad to Carso Unit
Mexico City, July 20 (Bloomberg) -- Grupo Tribasa SA, a Mexican construction company, agreed to
sell its stake in a railroad company, part of a plan to raise cash and reduce debt.
Tribasa agreed to sell its stake in Ferrocarril del Sureste, a company that operates a railroad in
Southern Mexico, to Empresas Frisco SA, a unit of Mexican industrial group Grupo Carso SA.
Tribasa valued the stake at $73 million.
Tribasa will receive the proceeds of the sale in the form of $36 million in cash and a reduction of its
debt by $320 million, the company said.
Tribasa plans to use the net proceeds to boost its working capital. With the sale of the railroad stake,
the company raised its debt reduction goal for this year to $1 billion. Tribasa has advanced 67
percent toward its target.
then I found another piece,
Mexico's Carso Unit Buys Tribasa's Railroad Stake (Update1)
Mexico's Carso Unit Buys Tribasa's Railroad Stake (Update1) (Adds size of transaction in 1st
paragraph, Tribasa comment in 5th paragraph, Share prices in last paragraph.)
Mexico City, July 20 (Bloomberg) -- The mining unit of Mexican industrial group Grupo Carso SA
agreed to buy a controlling stake in a railroad from construction company Grupo Tribasa SA for
about $343 million in cash and assumed debt.
Empresas Frisco SA, a subsidiary of Carso, plans to buy Tribasa's 67 percent stake in Mexico's
Southeastern railroad for $73 million in cash and about $270 million in assumed debt, said Manuel
Delgado, Tribasa's chief financial officer.
Tribasa will use about $50 million of the cash proceeds to also pay down debt it took on when buying
the stake from the government last year.
The sale of the stake is the latest stage in Tribasa's plan to boost working capital and reduce a
heavy debt load. Tribasa, one of Mexico's largest construction companies, missed a $26 million
payment on a $150 million bond in March.
The railroad ``was a very good project but it required a lot of capital and would have produced
results in the long term,' said Delgado. ``We weren't in a situation to wait.'
Mexican bank Banco Inbursa SA holds the remaining 33 percent in the 1,479-kilometer (919-mile)
railroad, which links Mexico City with the Gulf of Mexico ports of Veracruz and Coatzacoalcos.
Both Grupo Carso and Inbursa are owned by Mexican magnate Carlos Slim.
Tribasa plans to use the cash from the sale to boost working capital. The company has eliminated
$670 million in its efforts to reduce its debt-load by $1 billion by the end of the year. Tribasa and
Inbursa bought the concession to operate the railroad for about $323 million last year.
Shares in Tribasa rose 6 percent to 5 pesos, their biggest gain in three weeks. Carso fell 0.2 percent
to 42.1 pesos. |
