Mexico: Certificados de Participación Ordinarios (CPO) share allocation - Update
Note: This announcement originally published on 26 May 2021 has been updated to provide customers with an updated list of certificados de participacion ordinarias (CPOs) available to foreign investors in the Mexican market. Changes have been highlighted.
Further to Announcement A20116, Clearstream Banking1 would like to provide its customers with the updated Certificados de Participación Ordinario (CPO) share allocation list as of 9 August 2021.
CPOs are issued to allow foreign investors to purchase otherwise restricted shares. Mexican law allows companies that are subject to foreign ownership restrictions to place a portion of their shares in a neutral trust. The trust retains the voting rights to the shares (voting the shares in accordance with the majority in the shareholder meeting) while the shareholder retains the economic benefits of the shares (that is, dividends).
VOLAR, a restricted security to foreign investment ownership, is below its threshold but its percentage of shares held in the trust is above 90 percent. This security’s availability has been updated in the CPO allocation chart.
The below chart lists all the companies who have issued CPOs in the Mexican market, and their capacity limits as of 1 October 2021.
Shares held by foreign investors
Impact on customers
Customers are asked to review the list provided and to adjust their records accordingly. In the event that foreign investors purchase or hold a restricted security that does not have a corresponding CPO backing it, they could be subject to actions by the Comisión Nacional Bancaria y de Valores (CNBV), which may include the obligation to sell the shares or other actions including confiscation of the shares.
For further information, customers may contact Clearstream Banking Client Services or their Relationship Officer.
1. Clearstream Banking refers collectively to Clearstream Banking S.A., registered office at 42, avenue John F. Kennedy, L-1855 Luxembourg, and registered with the Luxembourg Trade and Companies Register under number B-9248, and Clearstream Banking AG (for Clearstream Banking AG customers using Creation Accounts), registered office at 61, Mergenthalerallee, 65760 Eschborn, Germany and registered in Register B of the Amtsgericht Frankfurt am Main, Germany under number HRB 7500.