Alfa S.A.B. de C.V. issued the following announcement on Dec. 28.
ALFA, SAB de CV (ALFA) announced that its subsidiary Alpek, SAB de CV ("Alpek") announced today that Corpus Christi Polymers LLC ("CC Polymers" ), a joint venture between certain subsidiaries of Alpek, Indorama Ventures Holding ("Indorama") and Far Eastern Investment (Holding) Limited ("Far Eastern"), successfully concluded the acquisition of the Corpus Christi Project from M & G USA Corp. and its debtors Affiliates ("M & G") in the amount of US $ 1,199 million in cash and other capital contributions.
The assets of the Corpus Christi Project include: an integrated PTA-PET plant under construction in Corpus Christi, Texas, certain intellectual property of M & G, and a desalination / boiler plant that supplies water and steam to the site. Once finished, the plant will have a nominal capacity of 1.1. million and 1.3 million tons per year of PET and PTA, respectively.
After the purchase of the Corpus Christi Project and in accordance with the terms of CC Polymers:
- Alpek, Indorama and Far Eastern will provide resources to CC Polymers to complete, in the most efficient manner, the Corpus Christi Project. The timetable for the completion and estimated investment of the project will be communicated later.
- Alpek, Indorama and Far Eastern will each have the right to receive one third of the PTA and PET produced by the Corpus Christi Project, once completed. Also, each one will acquire their raw materials independently and will be responsible for the sale and distribution of their corresponding PTA and PET, among other rights and obligations.
For the closing of the acquisition, Alpek contributed US $ 266 million in cash and US $ 133 million in other capital contributions. Alpek's other capital contributions correspond to a portion of the claim secured with M & G, derived from the Corpus Christi Capacity Reserve Agreement ("2L Guaranteed Claim"). In addition, Alpek will obtain US $ 67 million in cash for the remainder of its Secured Claim 2L, subject to certain conditions.
Original source can be found here.