Sun, 03 Dec 2023

Mexican Federal Judge Suspends Tender Offer

28 Sep 2023, 05:43 GMT+10

Landmark Ruling Is A Major Win For VN Capital and Other Minority Shareholders

GREENSBORO, NC / ACCESSWIRE / September 27, 2023 / A Mexican Federal Court has provisionally suspended Industrias Bachoco's takeover bid after VN Capital Management LLC, on behalf of other minority investors, requested an injunction to seek a better price for their shares. The landmark ruling is the first of its kind issued in Mexico and halts the open public offering process that was scheduled to conclude on September 29th.

VN Capital Management LLC, is an investment advisor to a fund holding 5,247,060 common shares of Industrias Bachoco that represents 0.85% ownership in the company. VN Capital has opposed Industrias Bachoco's delisting and subsequent takeover by the Robinson Bours family since it was first proposed in October 2022 as the offer price dramatically undervalues Bachoco's shares.

'This historic ruling is a massive win not only for Bachoco's minority shareholders, but for all investors in the Mexican Stock Exchange by protecting them from abusive controlling shareholders who are not restrained by supposedly independent boards of directors because those roles are often filled by the main shareholder's friends and business cronies. It's the first of what we hope will be many steps that will provide investors a level playing field in the Mexican capital markets,' said James Vanasek, Principal at VN Capital.

'Now that it is halted, we are confident that we can show the court that the true value of the company's shares is substantially higher than what the Robinson Bours family has offered, and we believe it is much closer to 130 Pesos per share rather than the 81.66 Pesos per share in the original November 2022 voluntary tender offer or the 88.26 Pesos in the current one added Don Noone, also Principal at VN Capital.

Given this view, VN Capital will continue to pursue all of its legal remedies, in opposition to the Robinson Bours family gaining 100% control over Industrias Bachoco at a cut-rate price, and VN Capital encourages other minority shareholders to support them in this effort.

About VN Capital Management

VN Capital Management, LLC is a registered investment advisory firm located in Greensboro, North Carolina that was founded in 2002 by P. Donnell Noone and James T. Vanasek. The firm manages a hedge fund that holds a concentrated portfolio of small-cap equities.

About Industrias Bachoco

Industrias Bachoco is the leader in the Mexican poultry industry, and one of the largest global poultry producers. Bachoco owns and manages more than a thousand facilities, organized in nine production complexes and 80 distribution centers in Mexico and a production complex in the United States.


VN Capital Management, LLC
Don Noone
+1 (336) 897-1615

James Vanasek
+61 407 528 900

SOURCE: VN Capital Management, LLC

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