Alfa, a Mexican conglomerate engaged in car parts and petrochemicals, is looking at options to launch an initial public offering (IPO) for its processed foods division Sigma Alimentos.
Sigma produces dairy and meat products under Fud and Nochebuena brands and operates in Costa Rica, US, El Salvador, Mexico, Peru and the Dominican Republic.
In the recent years, the division has been strengthening its presence through a series of acquisitions - Sigma acquired a Costa Rican cheese maker and a Mexican beef, poultry and pork processor. In 2010, it purchased Phoenix-based Bar-S Foods.
Alfa said it is in talks with Citibank, Goldman Sachs, Bank of America-Merrill Lynch and Banorte-Ixe to manage the latest stock offering, confirming a report by Bloomberg News last week, reported The Wall Street Journal.
In 2012, Alfa launched an IPO of its Alpek petrochemical unit. The company officials earlier said that they would initiate the listings of other units.
Recently, Grupo Lala announced plans to raise around $700m through an IPO to strengthen its distribution operations and prepay bank loans, according to a source familiar with the matter.
