8-KOther Events

SOUTHERN COPPER CORP/ 8-K Report, Corporate Update (Apr 2, 2009)

Filed April 2, 2009For Securities:SCCO

Summary

Southern Copper Corp (SCCO) announced a significant shift in its ownership structure, with Grupo México, S.A.B. de C.V. (GMéxico) becoming the beneficial owner of 80% of SCCO's common stock as of March 27, 2009. This increased ownership is a result of both SCCO's own share repurchase program and direct purchases of SCCO shares by GMéxico's subsidiary, Americas Mining Corporation (AMC). For investors, this development is noteworthy as it signifies a consolidation of control under GMéxico. The company states that the acquisition of these shares is expected to be accretive to SCCO shareholders, suggesting a positive impact on earnings per share. Investors should monitor how this heightened ownership by GMéxico influences SCCO's strategic decisions, capital allocation, and future operational plans.

Key Highlights

  • 1Grupo México, S.A.B. de C.V. (GMéxico) now beneficially owns 80% of Southern Copper Corporation (SCCO) common stock.
  • 2This ownership change is effective as of March 27, 2009.
  • 3GMéxico's increased stake is attributed to SCCO's share repurchase program and purchases by GMéxico's subsidiary, Americas Mining Corporation (AMC).
  • 4Since October 22, 2008, Americas Mining Corporation acquired 16.7 million shares of SCCO common stock.
  • 5Southern Copper Corporation repurchased 33.4 million shares of its own common stock.
  • 6The company explicitly states that the acquisition of shares will be accretive to SCCO shareholders.

Frequently Asked Questions

The main event is the increase in beneficial ownership of Southern Copper Corporation (SCCO) common stock by Grupo México, S.A.B. de C.V. (GMéxico) to 80% as of March 27, 2009.

GMéxico's increased ownership resulted from two primary actions: Southern Copper Corporation's own repurchase of its common stock, and direct purchases of SCCO shares by GMéxico's subsidiary, Americas Mining Corporation (AMC).

Southern Copper Corporation states that the acquisition of these shares is expected to be accretive to its shareholders, implying a positive effect on earnings per share.

Americas Mining Corporation (AMC) is a subsidiary of Grupo México, S.A.B. de C.V. (GMéxico) and has been actively purchasing shares of Southern Copper Corporation (SCCO).