Mega 3Q24 Credit Report – Fresh equity is (virtually) there… but, is that all?
Operadora Mega has mentioned a commitment of MXN 234m (USD 12m) in fresh equity from its shareholders (from whom exactly, though, is not entirely clear, as we will discuss below) in the 3Q24 financial statements submitted to the stock exchange Biva.
As the definitive shareholder approval is still pending, the funds don’t appear yet as part of the equity, though. Instead, they are temporarily part of the liability side of the balance sheet, under the following line: “aportaciones para futuros aumentos de capital pendientes de formalizar en asamblea de accionistas” (contributions for future capital hikes pending formalization at shareholders meeting).
In any case, the latter involves (this liability entry requires an entry for the same amount in the asset side of the balance sheet for it to be balanced) that the funds have already been contributed to the company, bolstering a nonetheless meager liquidity position (unless the contribution was made through a type of assets other than cash…).