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Mexico's Elektra up about 20% after lifted suspension slammed share

Published 12/11/2024, 01:19 PM
Updated 12/11/2024, 01:21 PM
© Reuters. FILE PHOTO: An Elektra corporate building is seen in Mexico City, Mexico, November 16, 2017. REUTERS/Edgard Garrido/File Photo
ELEKTRA
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MEXICO CITY (Reuters) - Shares of Mexico's embattled financial services company and retailer Elektra (BMV:ELEKTRA) gained nearly 20% on Wednesday, after an earlier suspension on trading on the local stock exchange was lifted triggering a sharp fall.

The company is part of the sprawling business empire of billionaire Ricardo Salinas, one of Mexico's richest men.

The company's stock was up 19.65% by midday Wednesday, trading at about 393 pesos ($19.53) per share.

Last week, Elektra's shares fell sharply, losing around 70% in a single session, when a trading suspension implemented in July was lifted.

The company has criticized Mexico's securities regulator for lifting the suspension, which began after Elektra said it was informed about a possible fraud scheme committed by one of its creditors, Astor Assets, which it argued illegally disposed of over 7 million of its shares.

Elektra is set to propose taking the company private at a shareholder meeting scheduled for Dec. 27.

© Reuters. FILE PHOTO: An Elektra corporate building is seen in Mexico City, Mexico, November 16, 2017. REUTERS/Edgard Garrido/File Photo

Its stock remains down 67% since the start of this year.

($1 = 20.1214 Mexican pesos)

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