Spin-off of Axtel would take place before the end of 2022: Alfa

The spin-off of the telecommunications business Axtel is advancing and could be completed before the end of 2022, said this Friday the general director of finances of AlfaEduardo Escalante.

“I am pleased to report that the process for Axtel to become Alfa’s second independent subsidiary is advancing,” Escalante said in a conference with analysts to present the conglomerate’s results for the third quarter of 2022.

Escalante said that the required legal term of 45 days was met during the quarter without any objection, in addition to the fact that the new entity (Controladora Axtel) has already been incorporated and its listing process is already in place.

Controller Axtel could start trading on the Mexican Stock Exchange before the end of the year”, assured the director of Alfa.

He recalled that once the spin-off is completed, Alfa will no longer have shares in Axtel, but that Alfa’s shareholders will be given shares in the new issuer, which they will be able to manage autonomously.

“The spin-off further simplifies Alfa’s corporate structure and enhances its strong financial position, leaving two major, leaving two major investment-grade rated operating subsidiaries under the holding company,” Escalante said.

It was at the end of June when Alfa announced its intention to spin off Axtel; its shareholders approved it a few days later, on July 12.

In 2020, Alfa also spun off its Nemak auto parts business, as part of the start of a strategy to unlock value. This process gave way to the creation of the new Nemak Controller issuer, which has been listed on the Mexican Stock Exchange (BMV) since December of that year.

Alfa is a Mexican conglomerate -based in Nuevo León- that has food, energy, petrochemical, auto parts and telecommunications businesses.