May 31, 2017
Mexico's Alsea agrees to sell Grupo Axo stake to General Atlantic
May 31, 2017
Mexican restaurant operator Alsea said on Tuesday it had reached an agreement with U.S. investment firm General Atlantic to sell its minority stake in Grupo Axo, a company that operates fashion brands.
Alsea, which manages international fast-food franchises and coffee shops such as Starbucks and Domino's Pizza, also announced a deal with Grupo Axo that would allow Axo to acquire the minority stake owned by Alsea in Axo units in Chile.
The two deals are worth a combined 1.6 billion pesos ($85.5 million), Alsea said in a statement.
General Atlantic did not immediately respond to an after-hours request for comment.
The news comes as Grupo Axo is reportedly reviving plans for an initial public offering of up to 3 billion pesos (122 million pounds) that was put on ice in November over fears of a fallout from Donald Trump's U.S. presidential win, four people familiar with the matter told Reuters in mid-May.
The Mexican retail brand manager, which markets brands like Tommy Hilfiger and Victoria's Secret, should launch the IPO towards the end of May, they said.
In October, Grupo Axo was said to be planning to raise about 2 billion pesos in an IPO, but the company froze plans in November after Trump's surprise election win, which sent the peso to a series of record lows.
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