The merger between Fibra Plus and Fibra HD, which will be the first operation of its kind within the real estate investment trust market in Mexico, would take place after the second quarter of this year.

According to the general director of Fibra Plus, Rodrigo González, it is currently in the process of authorization by the National Banking and Securities Commission (CNBV), the Federal Economic Competition Commission (Cofece), as well as by the shareholders' meetings of each company.

"For the possible merger to take place we are waiting between one to three months," said the manager.

He said that they depend on the timing of the government of Mexico, since various authorizations are yet to be passed, specifically from Cofece and the CNBV, but especially from the corporate governance of Fibra HD and Fibra Plus.

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Rodrigo González explained that the exchange value for this transaction will be reported at the time the compulsory takeover bid is carried out.

The executive considered that the business combination will generate value for its investors and, possibly, for those of Fibra HD. In addition, it will create synergies for both real estate trusts, such as the combination of the cash flows of each company.

"In our constant search for opportunities that add value to our investors, we are exploring various growth alternatives, such as the one related to the possible business combination with the other REIT, which is subject to a series of regulatory and corporate authorizations", reiterated the general director of Fibra Plus.

For his part, Alejandro González, an analyst at Intercam Casa de Bolsa, said that it is necessary to know the details of the takeover bid by Fibra Plus, regarding the value of the transaction and its obligation to define what will happen after the sale operation with Fibra HD. "These types of acquisitions require regulatory approvals that could take two to three months," said the specialist.

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This is the first merger to take place in the country's REIT sector. On this, the deputy general director of Fibra Uno, Gonzalo Robina, said that the announcements of mergers between the REITs do not cause any surprise, since it is something natural and he does not even rule out more agreements of this type.

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