SAN PEDRO GARZA GARCÍA, N.L. Mexico, Aug. 17, 2020 /PRNewswire/ -- ALFA S.A.B. de C.V. (BMV: ALFAA) ("ALFA") held today an Extraordinary Shareholders' Meeting where a proposal to spin-off its entire ownership stake in Nemak, S.A.B. de C.V. (BMV: NEMAKA) ("Nemak") was approved.
On behalf of ALFA's Board of Directors, Armando Garza Sada, Chairman of the Board, and Álvaro Fernández Garza, President, presented the proposal through which ALFA will execute the spin-off as a splitting entity. In addition, a new entity would be constituted as the spun-off company ("Controladora Nemak"), which will be listed on the Mexican Stock Exchange. ALFA will transfer its entire share ownership in Nemak to Controladora Nemak, as well as certain assets and capital. ALFA expects to complete the spin-off process within the next 60 days.
ALFA shareholders will receive one share of Controladora Nemak for each of their ALFA shares, in addition to retaining their share ownership in ALFA's equity.
"We greatly appreciate our Shareholders' vote of confidence in our strategy to unlock ALFA's full value potential. The spin-off approved today marks the first step in ALFA's transformational process towards fully independent business management; as compared to the legacy conglomerate structure," noted Armando Garza Sada, Chairman of ALFA's Board of Directors.
"Nemak has a very successful track record operating separate from the Parent. In addition to its leading industry position and world-class capabilities, the Company has an extraordinarily talented team that will continue to drive sustainable, long-term value creation for all its stakeholders. To ensure a smooth transition, Nemak will continue to receive all our support," said Alvaro Fernández Garza, President of ALFA.
For more information, please visit https://www.alfa.com.mx/SP/press.htm
SOURCE ALFA, S.A.B. de C.V.