The board of Alfa, S. A. B. de C. V. (BMV:ALFA A) agreed to spin-off Axtel, S.A.B. de C.V. (BMV:AXTEL CPO) on June 27, 2022. Alfa shareholders would receive one share of Holding Axtel for each of their Alfa shares, in addition to retaining their shareholding in Alfa's stocks. Subject to the corresponding approvals, Alfa expects to execute the spin-off by constituting a new entity as a spun-off company (“Controladora Axtel”), which would be listed on the Mexican Stock Exchange.

Alfa would transfer all of its shareholding in Axtel to the Axtel Controller, as well as other assets and capital. The proposal has been authorized and recommended by Alfa's Board of Directors and is subject to approval at the Extraordinary Shareholders' Meeting to be held on July 12, 2022. As per disclosure of July 12, 2022, ALFA, S.A.B. de C.V. (BMV: ALFAA) held an Extraordinary Shareholders' Meeting where a proposal to spin-off its entire ownership stake in Axtel, S.A.B. de C.V. (BMV: AXTELCPO) ("Axtel") was approved.

On behalf of ALFA's Board of Directors, Armando Garza Sada, Chairman of the Board, 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 Axtel"), which will be listed on the Mexican Stock Exchange. ALFA will transfer its entire share ownership in Axtel to Controladora Axtel, as well as certain other assets and capital.

ALFA expects to complete the spin-off, listing and share distribution processes before year end. As of February 16, 2023, The transaction is expected to close in March, 2023. As of May 19, 2023, Transaction is expected to close on May 26, 2023.