Mexican state sells share in Aeromexico

The Mexican government is selling its controlling share in the Aeromexico airline, the company announced.
It sent a communique to the Mexican stock exchange saying the state’s shares would be sold in “a secondary offering” on the local market and abroad.

The government controls 62 percent of Aeromexico, while the remaining 38 percent is in private hands.

The November 2005 scheduled privatization of Aeromexico was put off after offers for the company came in significantly below what officials had determined as its value.

The government had sold the nation’s other big airline, Mexicana de Aviacion, to the Posadas hotel conglomerate for $165.5 million.

The state had become the principal shareholder in both airlines after both companies tetered on bankruptcy following the 1995 Mexican financial crisis.