Mexico’s Alfa completes key step towards Alpek spinoff

HOUSTON (ICIS)–The proposed spinoff of Mexican polyester producer Alpek has reached a key milestone, with corporate parent Alfa saying on Tuesday that it has solicited consents from more than 90% of the holders of a batch of senior notes.

Alfa needed consents to amend some covenants and provisions that would allow it to spin off Alpek, it said.

Alfa did not provide a timeline for the spinoff.

Alfa has been discussing the possible spinoff for months.

Alfa was once a large conglomerate that owned Alpek, Nemak (aluminum and auto parts), Sigma (refrigerated foods), Alestra (IT and communications) and Newpek (natural gas and hydrocarbons).

If Alfa completes the spinoff, it would be left with Sigma.

Alpek produces polyethylene terephthalate (PET) and recycled PET (rPET) as well as polypropylene (PP) through its Indelpro joint venture with LyondellBasell and expandable polystyrene (EPS) through Styropek.