UPDATE 1-Mexico's ICA sells stake in waste firm, in talks with Caisse -sources

Wed Dec 23, 2015 7:25pm EST
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(CDPQ in talks with ICA, background)

By Alexandra Alper and Christine Murray

MEXICO CITY Dec 23 (Reuters) - Mexico's ICA has sold its stake in an environmental waste firm for around 1.2 billion pesos ($69.69 million), two people close to the negotiations said, as the embattled construction company scrambles for cash after declaring it would default.

ICA sold its 49 percent stake in Proactiva Medio Ambiente Mexico to a trust run by prominent Mexican businessman Fernando Chico Pardo, one of the people told Reuters. ICA jointly owned Proactiva with French water and waste group Veolia.

Gabriel Ibarra, an advisor to ICA Chairman Bernardo Quintana, confirmed the company had sold Proactiva but added that it was more focused on helping cash flow by finishing projects than by selling assets.

ICA is also in talks with Canada's second largest pension fund, Caisse de depot et placement du Quebec over possible asset sales, a third person said. ICA declined to comment on this.

The three people declined to be named as the negotiations were not public. Veolia, Proactiva and Caisse declined to comment.

Chico Pardo, board president of airport operator Asur and head of financial investment company Promecap, closed the deal with ICA in the last few days, the people said. Chico Pardo did not respond to requests for comment.

ICA had already sharpened its focus on asset sales before saying on Friday it would not pay $31 million due on an interest payment at the end of November, and that it aimed to draw up an initial restructuring plan by mid-February.   Continued...