Mexico's Alfa Seeks To Raise $1B For Energy Projects
MONTERREY, Oct 20 (Reuters) - Mexican conglomerate Alfa said on Monday it wants to issue about $1 billion worth of shares so it can invest in Mexican energy projects in shale gas, conventional hydrocarbons and electricity.
The company hopes to take advantage of a sweeping energy reform in Mexico passed earlier this year, which ended the decades-old monopolies of state-owned oil company Pemex and national power company CFE.
Alfa is looking to raise around $1 billion, a company spokesman said. Shareholders will vote on the proposal at a special meeting on Nov. 4.
Shares in Alfa were down 4.96 percent to 39.1 pesos per share at 1730 GMT.
The company, which manufactures car parts and refrigerated foods as well as petrochemicals, is one of a handful of Mexican companies set to benefit directly from the reform.
Next year Alfa will seek joint ventures with Pemex, particularly in three onshore mature fields, and will ramp up electricity generation in the next five years, the company told Reuters in August.
Chief Financial Officer Ramon Leal said this month that the Monterrey-based company was looking at a possible alliance or additional investment with Canadian oil company Pacific Rubiales Energy Corp..
Alfa is also planning initial public offerings of its Sigma and Newmak units next year. Sigma sells ham, cheese and yogurt among other refrigerated foods, while Newmak produces aluminum parts for the car industry.
(Additional reporting and writing by Christine Murray; Editing by W Simon, Meredith Mazzilli, Jeffrey Benkoe and David Gregorio)
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