MEXICO CITY (Reuters) - Mexican conglomerate Alfa (MX:ALFAA) said on Friday it plans to spin off the entire ownership of its 75% stake in car part business Nemak (MX:NEMAKA), sending Alfa's shares surging over 20%.
If shareholders approve the proposal at a meeting on Aug. 17, they would receive one share of Controladora Nemak for each of their Alfa shares. They would also retain share ownership in Alfa's equity.
"We plan a gradual and orderly transition process to make Nemak an independent business," Alfa President Alvaro Fernandez Garza said in a statement.
Controladora Nemak would be listed on the Mexican stock exchange following the spin-off, Alfa said.