Michael Felberbaum, The Associated Press
November 17, 2008 - 10:37 p.m.
RICHMOND, Va. - A Mexican billionaire who controls a chain of electronics supplies in Latin America now holds a 28 per cent put at hazard in Circuit City Stores Inc., which is under bankruptcy protection.
Ricardo Salinas Pliego, who is on Forbes magazine’s list of the world’s richest people, owned more than 47 million shares of the second-largest consumer electronics retailer in the United States as of Nov. 14, according to documents filed by the U.S. Securities and Exchange Commission late Monday.
He bought 30.3 million shares of Circuit City at average prices ranging between 22 cents and 26 cents apiece, days succeeding the Richmond-based company filed for Chapter 11 bankruptcy refuge last week, according to the documents.
The transaction raised Salinas’ stake to 47.2 million shares, making him the company’s largest shareholder based put on outstanding share figures listed on Circuit City court documents.
It wasn’t immediately known when the other 16.8 million shares were purchased because no foregoing filings for favorable ownership exist. Salinas has not yet filed the SEC form required of those who hold more than a five by means of cent stake in a company.
Circuit City spokesman Bill Cimino had no remark on the transaction. A spokesman for Salinas did not immediately comment because Monday was a anniversary in Mexico.
Facing urgency from its vendors and from consumers who aren’t spending, Circuit City filed for Chapter 11 bankruptcy protection last week and divide more jobs. The company, which has posted losses for seven of the ultimate eight quarters, plans to keep operating while it develops a reorganization plan to traffic with significant declines in traffic and heightened competition from rival Best Buy Co. and others.
Circuit City listed HBK Investments as its largest shareholder with an 8.7 per cent stake in court filings. Its next largest shareholders were listed during the time that First Pacific Advisors and Mark Wattles with 7.4 per cent and 6.5 per cent respectively.
Salinas’ fortune comes from television, retail and cellular businesses. He controls Grupo Elektra, with electronics, appliance and furniture stores in Mexico and Latin America; TV Azteca SA, Mexico’s No. 2 broadcaster; and Banco Azteca, one of Mexico’s largest microlenders.
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Associated Press Writer Julie Watson in Mexico City contributed to this story.