The Mexican telecommunications company Axtel announced that it received authorization from the National Banking and Securities Commission (CNBV) for the registration of their shares in the National Securities Registryas part of its spin-off process from Grupo Alfa.
Said spin-off process was approved by Alfa’s shareholders on July 12, 2022 and, as a result of this transaction, the group’s shareholders will receive one Controladora share for each one they own in Alfa, the company said in a statement.
The start date of the shares of Controladora Axtel in the Mexican Stock Exchange will be on May 29, 2023. The number of shares and Ordinary Participation Certificates (“CPO”) of Axtel remains unchanged; each CPO represents seven Axtel shares.
“The spin-off represents a great opportunity to deepen our strategic agenda, maintaining the same corporate governance and financial discipline that characterizes us,” said Armando de la Peña, CEO of Axtel.
“We will continue to implement our new operating and business model to achieve greater proximity and customer focus. The objective is to generate greater opportunities for specialized solutions to accelerate our growth in a profitable way”, added the manager.
This is the second subsidiary of Grupo Alfa to be spun off from the conglomeratewith the aim of giving more value to investors and simplifying its operating structure.
Grupo Alfa shares fell 2.5% after Axtel authorization announcement to be listed on the Mexican stock market.
In a note to investors, Barlcays bank warned that the spin-off process for Alfa’s other subsidiaries, Alpek and Sigma, appears more complex than Axtel’s.
“Positive financial performance from both Sigma and Alpek would be required for their dividends to help deleverage at the holding level, but simultaneously Alpek’s share price at the time of any possible spin-off would have tax implications; This seems like a complex balance to strike,” the bank added.
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