Elektra, a Mexican financial services and retail company owned by billionaire Ricardo Salinas, saw its stock price surge nearly 20% on Wednesday, reaching approximately 393 pesos ($19.53) per share. This rebound followed a sharp decline last week when a trading suspension, implemented in July, was lifted, causing the stock to plummet roughly 70% in a single session.
The suspension was initially put in place after Elektra disclosed a potential fraud scheme involving creditor Astor Assets, which allegedly illegally disposed of over 7 million Elektra shares. The company has publicly criticized Mexico’s securities regulator for lifting the suspension.
Despite Wednesday’s gains, Elektra’s stock has significantly declined by 67% since the beginning of the year. The company is planning to propose privatization at a shareholder meeting scheduled for December 27th. This move could potentially delist Elektra from the Mexican stock exchange. The outcome of the shareholder vote will determine the future trajectory of the company.
Elektra’s recent volatility underscores the inherent risks in emerging markets and the potential impact of regulatory decisions on stock performance. The upcoming shareholder meeting will be crucial in determining the company’s future direction and its ability to recover from the significant losses incurred this year.
