Mexico’s Alfa to spin off rest of stake in autoparts unit Nemak

MEXICO CITY (Reuters) – Mexican conglomerate Alfa said on Friday it plans to spin off the entire ownership of its 75% stake in car part business Nemak , 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.

(Reporting by Daina Beth Solomon and Dave Graham)