MEXICO CITY Jan 22 Mexican construction company
ICA on Wednesday said it had reached a deal to sell a
majority stake in its prison business to a subsidiary of
privately held Hunt Companies Inc for 1.5 billion pesos ($113
ICA will sell 70 percent of two 22-year prison service
contracts to Hunt unit CGL. ICA will retain the other 30 percent
stake in the contracts, in which it invested more than $1
billion, the firm said in a statement.
The deal, which would also let ICA unload some of its debt
and which is subject to approval from Mexican authorities, also
includes plans for a joint venture with CGL to seek more prison
projects in Mexico, ICA said.
About 10.1 billion Mexican pesos of debt related to the
prison contracts will be split under the deal, the company said.
Credit Suisse analysts said in a note that interest payments on
the debt in 2014 was set to be 1 billion pesos.
Shares in ICA closed up 0.38 percent at 26.26 pesos