Grupo Elektra Shares Plunge 71%, Eroding Ricardo Salinas Pliego’s Fortune

Shares of Grupo Elektra plummeted 71% on Monday as trading resumed after a prolonged halt, erasing $5.5 billion from billionaire Ricardo Salinas Pliego’s net worth and removing him from the list of the world’s 500 wealthiest individuals.

The Bolsa Mexicana de Valores disclosed in a filing that regulators had instructed it to allow trading to proceed, even if premarket activity triggered circuit breakers. These mechanisms had previously prevented trading from restarting. Despite Elektra’s premarket statement asserting a court order to keep trading blocked, the exchange moved forward. The company warned that participants trading its stock could face accountability, describing the trading resumption as potentially causing irreparable harm.

Luciano Pascoe, a spokesperson for Grupo Salinas, reiterated the company’s stance, emphasizing that the resumption of trading could involve shares that were improperly obtained. He noted that any resulting consequences would fall solely on those buying or selling the stock.

The trading halt, initiated in July by Salinas, followed his claims of potential fraud. His legal team alleged that a creditor had used Elektra shares to secure a $110 million loan, only to sell most of them, causing the stock price to plummet. The creditor denied any misconduct.

After a month of inactivity, Elektra was removed from Mexico’s main stock index. The resumption of trading sparked a selloff, with exchange-traded funds managed by BlackRock Inc. and The Vanguard Group offloading shares. Trading volume surged to its highest level in over seven years.

Regulators had struggled for days to lift the halt due to low bids repeatedly activating market circuit breakers. Salinas’ lawyers opposed the resumption, arguing it would cause significant harm to the company.

Although the stock’s collapse has drastically reduced Salinas’ paper wealth, which had been critical in securing loans against Elektra’s value, the downturn may simplify plans to take the company private. Elektra announced plans to hold a meeting in late December to discuss delisting its shares.

Salinas’ 75% stake in Elektra is now valued at approximately $2.2 billion, down from $7.6 billion last week, bringing his net worth to around $5 billion. Once ranked as the world’s 262nd-richest individual, Salinas has fallen off the list of the 500 wealthiest people, with other Mexican billionaires surpassing him.

Responding to reports of his diminished wealth, Salinas took to social media, calling commentators “idiots” and highlighting the company’s record earnings this year. He dismissed concerns, framing the stock market exit as a strategic decision and expressing confidence in Elektra’s future performance.

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