UPDATE 2-Mexico's Alfa says eyeing subsidiary IPOs as 3rd-qtr profit falls
(Adds details on possible IPOs, background and CFO quote)
By Gabriela Lopez
MONTERREY Oct 14 (Reuters) - Mexican conglomerate Alfa said on Tuesday it is planning a possible initial public offering of its Sigma and Nemak units next year, after earlier reporting a 67.4 percent drop in its third-quarter profit.
The IPOs would allow Alfa to lower its debt burden, Chief Financial Officer Ramon Leal told reporters, adding that the company was also evaluating alliances or additional investment with Canadian oil company Pacific Rubiales Energy Corp.
Leal said the IPOs for Sigma and Nemak could lower Alfa's debt ratio to 1.5 times earnings before interest, tax, depreciation and amortization (EBITDA) by the end of 2015.
Sigma sells ham, cheese and yogurt among other refrigerated foods, while Nemak produces aluminum parts for the car industry.
Monterrey-based conglomerate Alfa reported quarterly profit of 721.47 million pesos ($53.75 million), compared with 2.21 billion pesos in the year-earlier period.
"The reduction is explained mainly by exchange rate losses after the peso depreciated during the quarter," the company said in a statement.
The company said the quarter's exchange rate losses totaled 1.67 billion pesos. Continued...