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A holding company, which conducts all of its operations through its subsidiaries.
Mexico is spending $150 million dollars to build a new airport at Riviera Maya, 2 hours drive from Cancun. Currently anybody wanting to go to Riviera Maya flies in to Cancun. Once this airport is built, Cancun air traffic will be cut in half.This leaves ASR in a bad position. They want to bid in the auction for the airport. The Mexican government may or may not let them bid. If they are allowed to bid, they will be competing against the other airport companies. In addition Carlos Slim has announced that he wants to bid. ASR has $140 million in cash. They will have to spend all of that and more in order to get the rights to the Riviera Maya airport. If Carlos Slim wants to outbid them, he will. Even if they win the auction, which would appear to be unlikely, they would be spending all that money in order to keep traffic from getting away. I'm negative on these shares over the next year.
Why do you think it would be "unlikely" for them to get the bid? In fact, it's just as likely that they will, given that the government has already shown a history of preferring to structure clusters of airports into companies, thus ASR, OMAB,PAC, etc., which are arranged (roughly) geographically.Sj
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