Mexico-based Industrias Bachoco is considering initiating the processes to delist from the New York Stock Exchange (NYSE).
At the same time, the company intends to terminate its obligations to prepare and file reports with the U.S. Securities and Exchange Commission (SEC) as set forth by the U.S. Securities and Exchange Act of 1934.
The poultry, egg and pork company is headquartered in Mexico, but it also has broiler operations in the United States through its O.K. Foods subsidiary, which is the 16th largest poultry producer in the United States.
According to a press release from Bachoco, there presently is “low trading volume in the United States.”
The company further stated, “the relatively low participation in the American Depositary Receipts (ADR) program and the benefits of maintaining the ADRs program against the costs related thereto,” were an incentive to work toward delisting with the NYSE.
At the present time, Bachoco trades on both the NYSE and the Bolsa Mexciana de Valores (SAB) exchange in Mexico. In its press release, Bachoco stated that its efforts to delist from the NYSE or terminate its registration under the U.S. Securities and Exchange Act, would not affect its listing on the, nor will it affect its registration with the Mexican Securities Commission.
Bachoco, according to the WATTPoultry Top Poultry Companies survey, is Mexico’s largest broiler producer and the ninth largest in the world, having slaughtered 627 million chickens during the past year. As an egg producer, Bachoco ranks as the second largest in Mexico and the 14th largest in the world with a flock of 12.5 million hens.
The company diversified in 2020 into the pig industry through the acquisition of Sonora Agropecuarira.
Earlier this year, Bachoco announced the upcoming retirement of CEO Rodolfo Ramos Arvizu, and the appointment of Ernesto Salmon Castelo as his successor.
