Axtel, S.A.B. de C.V. (BMV:AXTEL CPO) announced that its main shareholder, Alfa, S. A. B. de C. V. (BMV:ALFA A), will hold an extraordinary shareholders' meeting on July 12 to present a proposal to spin-off its entire shareholding in Axtel. This transaction is subject to the corresponding approvals and ALFA expects to execute the spin-off by incorporating a new entity as a spin-off company as "Controladora Axtel", which would be listed on the Mexican Stock Exchange. "ALFA would transfer its entire shareholding in Axtel to Controladora Axtel, as well as other assets and capital, " said the firm.

In the transaction, ALFA's shareholders would receive one share of Controladora Axtel for each of their ALFA shares, in addition to retaining their equity interest in ALFA's capital stock. "This decision gives us the opportunity to continue to capitalize on our strengths and focus on our strategic agenda. Axtel has a robust infrastructure, the best talent with years of experience, as well as a strong focus on innovation and specialization; elements that allow us to offer world-class services to our customers, revenue growth and profitability," said Armando de la Peña, CEO of Axtel.