ALPEK B de C : concludes the sale of its two cogeneration plants
November 26, 2019 at 09:03 am EST
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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, Mexico.
The agreement includes the sale of Alpek's full stake in both Cogeneracion de Altamira, S.A. de C.V. and Cogeneracion de Energia Limpia de Cosoleacaque, S.A. de C.V., to ContourGlobal Holding de Generacion de Energia de Mexico, 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. Jose de Jesus 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 Jose 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.
About Alpek
Alpek (www.alpek.com) is a leading petrochemical company operating two business segments: 'Polyester' (PTA, PET and polyester fibers), and 'Plastics & Chemicals' (polypropylene, expandable polystyrene, caprolactam, and other specialty and industrial chemicals). Alpek is an integrated producer of PTA and PET in North America, the largest expandable polystyrene manufacturer in the Americas, and the only producer of caprolactam in Mexico. Alpek also operates one of the largest polypropylene facilities in North America. In 2018, Alpek reported revenues of U.S. $6.9 billion and EBITDA of U.S. $1,063 million. The Company operates 27 plants in the United States, Mexico, Canada, Brazil, Argentina and Chile, and employs more than 5,700 people. Alpek is a publicly traded company listed on the Mexican Stock Exchange.
About ContourGlobal
ContourGlobal (www.contourglobal.com) is an international power generation company with approximately 4,100 MW in operation in 19 countries across Europe, Latin America and Africa. ContourGlobal operates a portfolio of 69 thermal and renewable power plants utilizing a wide-range of technologies including wind, solar, hydroelectric, natural gas and coal. ContourGlobal is a publicly traded company listed on the London Stock Exchange.
Alpek SAB de CV is a Mexico-based company engaged in the chemicals sector. The Company's activities are divided into two business segments: Polyester and Plastics & Chemicals. The Polyester division focuses on the manufacture and distribution of purified terephthalic acid (PTA), polyethylene terephthalate (PET) and polyester fiber. The Plastics & Chemicals division is responsible for the production of polypropylene (PP), expandable polystyrene (EPS), caprolactam (CPL), ammonium sulfate, as well as specialty and industrial chemicals, such as surfactants, ethoxilates, glycoethers and desemulsionates. The Company's products are used in a range of industries, including consumer goods, food and beverages, automotive, construction, agriculture, oil and gas, as well as pharmaceuticals. It operates a number of production plants in the Americas. The Company is controlled by Alfa SAB de CV.
ALPEK, S.A.B. DE C.V. 
