Mexico’s Alfa to Issue More Shares for Energy Investment

Shareholders will vote on the proposal at a special meeting on Nov. 4, the company said. It did not specify the size of the capital raise.

Alfa’s shares fell 4.25 percent to 39.4 pesos in early trading on Monday.

Earlier this year, Mexico finalized an energy reform that ends the decades-old monopolies of state-owned oil company Pemex and national power company CFE, aiming to lure billions of dollars in investment.

Alfa, which manufactures car parts and refrigerated foods as well as petrochemicals, is one of a handful of Mexican companies set to benefit directly from the reform.

Next year it will seek joint ventures with Pemex, particularly in three onshore mature fields, and will ramp up electricity generation in the next five years, the company told Reuters in August.

Chief Financial Officer Ramon Leal said earlier in October the Monterrey-based company was looking at a possible alliance or additional investment with Canadian oil company Pacific Rubiales Energy Corp..

Alfa is also planning initial public offerings of its Sigma and Newmak units next year. Sigma sells ham, cheese and yogurt among other refrigerated foods, while Nemak produces aluminum parts for the car industry.

Alfa S.A.B. de C.V., also known as Alfa or Alfa Group, is a Mexican multinational conglomerate headquartered in Monterrey, Mexico. It is a diversified group of businesses, mainly industrial, that produces petrochemicals, aluminum auto components, and refrigerated foods. It also participates in the extraction of oil and natural gas, and offers IT & telecom services. It is the global leader in the production of engine blocks and cylinder heads for American and European automakers; it is one of the largest PET and PTA producers in North America; and it is also a the leader in the distribution of refrigerated foods in Mexico.

(Reporting by Christine Murray; Editing by W Simon, Meredith Mazzilli and Jeffrey Benkoe)


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