Shareholders in Mexican conglomerate Alfa approve spin-off of chemical subsidiary Alpek (updated)

Alfa Laval AB

24/10/2024 22:51

(Updates throughout with additional details)
       MEXICO CITY, Oct 24 (Reuters) - Shareholders of Mexican
conglomerate Alfa  ALFAA.MX  approved the spin-off of its
petrochemical subsidiary Alpek  ALPEKA.MX  on Thursday, a
long-awaited move aimed at shoring up Alfa's finances after
being weighed down by market swings hitting Alpek.
    Alpek will now become known as Controladora Alpek, Alfa said
in a filing, taking a cue from Alfa's former telecommunications
unit Axtel, which was spun off into Controladora Axtel
 CTAXTELA.MX .
    Controladora Alpek will also be listed on Mexico's main
stock exchange, Alfa said, and shareholders in Alfa will receive
one share in Controladora Alpek for each Alfa share they hold.
    Shares in Alfa closed at 14.55 pesos ($0.74) on Thursday
before the announcement. 
    The spin-off, exchange listing and share distribution should
be carried out next year, Alfa said. 
    Alfa executives had long complained of the firm being
weighed down by a so-called "conglomerate discount," in which
the firm as a whole was valued at less than its parts. 
    Before spinning off Alpek and Axtel, Alfa also spun off
automotive parts maker Nemak  NEMAKA.MX . 
    "This separation allows each business to be valued by the
market on the basis of its merits and individual potential,"
Alfa said.
    Alfa will now focus in on its food subsidiary Sigma, it
said.
        "The advantages of the food industry, the positioning of
Sigma's brands in all of the regions it serves and its constant
growth are some of the bases which will allow (Alfa) to reach a
higher valuation," the firm said.
($1 = 19.7930 Mexican pesos)

 (Reporting by Aida Pelaez-Fernandez and Kylie Madry; Editing by
Brendan O'Boyle and Jamie Freed)
 ((Aida.Pelaez-Fernandez@thomsonreuters.com;))