Monterrey, N.L., México, November 25, 2019
Alpek, S.A.B. de C.V. (“Alpek”) announced today that it has finalized the sale of its two electric power cogeneration plants located in Cosoleacaque and Altamira, México. The agreement includes the sale of Alpek’s full stake in both Cogeneración de Altamira, S.A. de C.V. and Cogeneración de Energía Limpia de Cosoleacaque, S.A. de C.V., to ContourGlobal Holding de Generación de Energía de México, S.A. de C.V., a subsidiary of ContourGlobal PLC. The purchasing party has taken control of the assets as of today.
In accordance with the previously announced sale agreement, Alpek sold its stake in both plants for an amount of U.S. $801 million on a debt free basis. José de Jesús Valdez, Alpek’s CEO, stated, “This transaction represents the largest divestment in Alpek’s history. Through this deal we were able to monetize our assets at an attractive valuation, while ensuring a reliable and competitive energy supply for our Mexican facilities.”
It is important to note that Alpek will continue to be an energy and steam off–taker from both of these cogeneration plants, which will be owned and operated by a world–class player like ContourGlobal.
“The net proceeds of the sale will be used to pay a one–time dividend of U.S. $143 million, while the rest will be applied towards paying down debt. This will result in better leverage for Alpek and will position the company favorably to pursue future investment opportunities,” noted José Carlos Pons, Alpek’s CFO. Having already received the proceeds from this sale, Alpek will convene a Shareholders’ Meeting to process and pay the aforementioned dividend immediately afterwards.
Alpek and Alfa will hold a joint call on Wednesday, November 27 at 10:30 a.m. (EST) to provide more details about the transaction.
