ContourGlobal plc completed the acquisition of two cogeneration energy plants of ALPEK in Mexico from ALPEK, S.A.B. de C.V. (BMV:ALPEK A).
November 24, 2019
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ContourGlobal plc (LSE:GLO) agreed to acquire two cogeneration energy plants of ALPEK in Mexico from ALPEK, S.A.B. de C.V. (BMV:ALPEK A) for approximately $720 million on January 6, 2019. The consideration included $724 million in cash and $77 million represents the Value Added Tax (VAT) assessed for the transaction and is expected to be refunded in full within 12 months of closing of the deal. The consideration is being financed through a combination of an amortizing project financing of up to $590 million, together with existing cash resources of the ContourGlobal. The acquisition is subject to the approval of ContourGlobal’s shareholders, Mexican antitrust authority and regulatory approval. As of December 31, 2018, ContourGlobal has approximately 71% of the ordinary share capital, has provided an irrevocable undertaking to vote in favor of the inter-conditional resolutions to approve the acquisition. As on March 21, 2019, the transaction was approved by the UK Listing Authority and the general meeting will be held on April 5, 2019 to approve the acquisition. ContourGlobal’s shareholders approved the transaction on April 5, 2019. The deal is expected to get closed in the second quarter of 2019. This accretive transaction fits squarely into ContourGlobal’s strategic and financial approach to acquisitions. J.P. Morgan acted as financial advisor to Alpek. Evercore acted as financial advisor to ContourGlobal Terra. Héctor Kuri Q., Carlos De María, Mariana Herrero Saldivia, Guillermo Pérez Santiago, Nadia González, Ernesto Partida F., José Alejandro Cortés Serrano, Jessica Hurtado, Lucía Manzo F., Diana González, Héctor Salazar and Mariana Islas of Galicia Abogados, S.C. acted as legal advisors to ContourGlobal PLC. Ricardo Maldonado Yáñez, Patrick Meshoulam, Carlos Orcí Berea, Jaime Ostos Rincón Gallardo, Paula Pérez Benítez, Federico del Río and Fernando Ruíz of Mijares, Angoitia, Cortés y Fuentes acted as legal advisors to Alpek S.A.B. de C.V. Linklaters LLP acted as legal advisor, PricewaterhouseCoopers LLP and Deloitte as accountants to ContourGlobal plc. Equiniti Limited acted as registrar to ContourGlobal plc.
ContourGlobal plc (LSE:GLO) completed the acquisition of two cogeneration energy plants of ALPEK in Mexico from ALPEK, S.A.B. de C.V. (BMV:ALPEK A) on November 25, 2019.
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.