On March 29, 2007, DESC, S.A.B. DE C.V. announced the conclusion of the spin-off of the real estate businesses creating a new entity named DINE, S.A.B. de C.V. (“DINE”). Also, as of that date, DESC´s company name changed to GRUPO KUO, S.A.B. de C.V. (“KUO”), which operates the industrial and commercial businesses.
On May 30, 2007 in accordance with the resolutions approved at the General Ordinary and Extraordinary Shareholders’ Meeting held on December 5, 2006, the company proceeded with the swap of KUO shares in circulation for new shares (“2007 Offering”). Due to the above, Grupo KUO spun off its real estate business into a new company named DINE, S.A.B. de C.V. (“DINE”).
Therefore, Grupo KUO delivered to shareholders of KUO, representative shares in the capital stock of DINE in the same proportion as the number of shares held in KUO. Furthermore, the price of DINE´s shares was determined on May 30, 2007, through a public auction in which all interested brokerage firms participated.
As a consequence of the spin-off, two companies were created with specialized management teams that will capitalize in a more rapid and efficient manner, the opportunities presented in their respective markets:
• Grupo KUO is one of the most important industrial groups in Mexico with annual sales of approximately US $1.8 billion and nearly 10,500 employees. Through its subsidiaries, it is a leader in the Chemical, Consumer and Automotive businesses. For more information please visit www.kuo.com.mx
• DINE is one of the most important and diversified real estate businesses in Mexico with annual sales of approximately US $100 million and more than 30 years of experience in Residential, Tourist, Office and Commercial developments. For more information please visit www.dine.com.mx