Mexican conglomerate Alfa has proposed the spin-off of its entire stake in operator Axtel, a move it claimed will unlock the underlying value of the group.
The proposal was approved and authorised by the Alfa board but is now subject to the approval of shareholders at the company’s next shareholders' meeting on July 12.
“We are convinced that the proposed spin-off is the best step forward. Alfa shareholders continue to gain autonomy as we streamline the conglomerate structure to unlock the great value potential of our company,” said Alfa chairman of the board Armando Garza Sada.
Alfa detailed it will create a new company called Controladora Axtel to which it will transfer all shares of the operator, and it will be listed on the Mexican stock exchange.
“Axtel has a solid financial and competitive position as a leading provider of managed information and communication technology solutions. We trust in Axtel's great capacity to capitalise on attractive growth opportunities as an independent business. Axtel will have the full support of Alfa to ensure an orderly transition,” added Alfa president Álvaro Fernández Garza.