OHL Mexico S.A.B. de C.V. (“OHL Mexico” or the “Company”) (BMV: OHLMEX) informs the public investor of certain matters related to its principal subsidiary, Concesionaria Mexiquense, S.A. de C.V. (Conmex) and its controlling shareholder, OHL Concesiones, S.A.U.
In accordance with its strategy, due to the significant capital investments required by its projects and extended ramp-up periods for new projects, the Company continually reviews its assets in order to reallocate capital and maximize its value to its shareholders, including by potentially divesting stakes in existing assets in order to invest in existing and new concessions and growth opportunities. The Company is currently engaged in a process to potentially reduce its interest in Conmex, while retaining at all times majority ownership and control. The proceeds from any such transaction, if and when it occurs, would be intended to provide funds for investment by the Company in existing concessions in pre-construction phases and any subsequently awarded concessions. Any decision to sell a minority interest in Conmex, under these assumptions, would depend, among other factors, upon the price and terms offered. The Company believes that Mexico’s commitment to infrastructure investment continues to present significant opportunities for the Company. Any disposition of a minority interest in Conmex would strengthen the Company’s capital position to respond to those opportunities.
Conmex’s direct holding company, Organización de Proyectos de Infraestructura, S. de R.L. de C.V. (OPI), is in the process of seeking to refinance its existing credit arrangements. Such refinancing, which may include entering into one or more additional loan facilities or the placement of debt instruments in the local or international markets, may also include increasing OPI’s debt in order to upstream funds to OHL Mexico and contribute to financing existing capital needs and growth opportunities for the Company.
Finally, OHL Concesiones, S.A.U., the Company’s controlling shareholder, has informed the Company that it is actively engaged, for its own capital requirements, in discussions with certain investors to sell more than 5% but less than 10% of its shares of the Company. OHL Concesiones, S.A.U. has also informed that it remains committed to maintaining a majority and controlling interest in the Company.
