Mexico’s AHMSA sees net loss increase in Q1

Thursday, 09 July 2020 10:54:46 (GMT+3)   |   Sao Paulo

Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said net loss in Q1 this year reached MXN 5.20 billion ($230.3 million), up from a net loss of MXN 681 million ($30.1 million) in Q1 2019.

The Mexican steelmaker, which is expected to either merge with or be acquired by Grupo Villacero, posted an EBITDA loss of $122.3 million in Q1 this year, up from an EBITDA loss of $22 million in the same quarter of the year prior.

AHMSA said on July 3 it is still in talks with Grupo Villacero for a “merger,” which should help the indebted steelmaker to restructure itself and get a new capital injection. AHMSA said at the time talks should conclude in a 90-day timeline, and currently there isn’t a sale agreement with the two parties.

This week, a media report by El Financiero said Grupo Villacero has already become the owner of AHMSA. The media report labeled the undisclosed transaction as a “done fact.” AHMSA has not yet released any official statement other than what it said on July 3.

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