(Bloomberg) -- Shares in billionaire Ricardo Salinas’ Grupo Elektra are clawing their way back from a 70% rout last week as the company repurchases equity ahead of a vote to go private at the end of the month.
The stock has gained more than 60% this week, helping to add more than $1 billion back to Salinas’ fortune after his wealth had slumped by $5.5 billion when the stock began trading on Dec. 2 after a four-month halt. But it’s still down 50% this month.
The shares pared last week’s losses after Elektra started repurchasing equity on Dec. 6, making deals with big holders. Index tracking funds managed by companies such as BlackRock Inc. and The Vanguard Group are looking to sell the stock after Elektra was removed from Mexico’s benchmark stock index following the company’s trading suspension in July.
Elektra bought back some 3.8 million shares in two trades on Monday and Tuesday at 350 pesos each, above where the stock was trading at the time, according to company filings with the stock exchange.
Those trades are anonymous, but the amount is roughly equal to holdings of BlackRock Inc. and Vanguard funds, the biggest holders of Elektra besides Salinas, according to data complied by Bloomberg. The repurchases left almost 44 million shares in free float, according to data compiled by Bloomberg.
BlackRock and Vangaurd declined to comment. Elektra representatives did not immediately respond to a request for comment.
With selling pressure relieved, the stock has risen past its book value of 419 pesos per share, which would be the minimum Salinas would have to offer to delist the stock, according to Mexican law. That value may change if the billionaire delays his tender offer until after fourth-quarter results are filed.
Shares jumped as much as 20% on Friday, closing at around 470 pesos, compared to 945 pesos at the end of November.
The hit to Salinas’ fortune knocked him off the top 500 of Bloomberg’s Billionaires Index, but he has shrugged off the blow to his wealth.
“It didn’t affect my freedom in the least, not at all,” Salinas said in a post by his nephew on TikTok last week. “On the contrary, it’s already taken a weight off my shoulders. I’m no longer on the damn list.”
--With assistance from Leda Alvim.
(Updates with closing prices starting in first deckline headline.)
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