Fresnillo Weighs Equity Sale

Mexico’s Fresnillo is considering a rights offering this year to raise more than $341m, in order to increase its free-float, according to local news and wire reports citing remarks by company officials. A second option to get the silver miner’s float to the more than 25% required by the FTSE, from 22.86%, would be a sale of a stake from controller Industrias Penoles. Penoles is not in favor of this second option due to a large tax impact. The proceeds could be used to fund its growth projects and could be used for mergers and acquisitions. Fresnillo held an IPO in London in 2008.