Alfa S.A.B. de C.V. issued the following announcement on Jan. 6.
ALFA, SAB de CV (ALFA) informed today that its subsidiary Alpek, SAB de CV ("Alpek") signed a final agreement for the sale of its two power cogeneration plants, located in Cosoleacaque and Altamira, Mexico.
The agreement contemplates the sale of the total shareholding in the companies of both plants, Cogeneración de Altamira, SA de CV and Cogeneración de Energía Limpia of Cosoleacaque, SA de CV, for an amount of US $ 801 million to ContourGlobal Terra 3 S.à.rl, a subsidiary of ContourGlobal plc.
Álvaro Fernández Garza, CEO of ALFA, said: "The transaction is in line with ALFA's strategy of creating value for its shareholders and reducing its financial leverage. In conjunction with the recent divestment of the mass market in Axtel, revenues from the sale of non-strategic assets exceed US $ 1,000 million. The resources from these transactions will substantially strengthen our balance sheet, by reducing the ratio of Net Debt to Flow, pro forma to 3Q18, from 2.7 times to 2.4 times. "
In accordance with the purchase agreement, the agreed price will be subject to certain adjustments and must be paid at the close of the transaction, which is expected during the first semester of 2019.
The transaction is subject to customary closing terms and conditions, including corporate and Federal Commission of Economic Competition approvals.
In accordance with the applicable legal provisions, Alpek prepared an information brochure on corporate restructuring of this transaction. The brochure is available to the public at www.alpek.com and on the website of the Bolsa Mexicana de Valores, SAB de CV, www.bmv.com.mx.
Original source can be found here.