MEXICO CITY, Oct 24 (Reuters) - Shareholders of Mexican

conglomerate Alfa approved the spin-off of its

petrochemical subsidiary Alpek on Thursday, a

long-awaited move aimed at shoring up Alfa's finances after

being weighed down by market swings hitting Alpek.

Alpek will now become known as Controladora Alpek, Alfa said

in a filing, taking a cue from Alfa's former telecommunications

unit Axtel, which was spun off into Controladora Axtel

.

Controladora Alpek will also be listed on Mexico's main

stock exchange, Alfa said, and shareholders in Alfa will receive

one share in Controladora Alpek for each Alfa share they hold.

Shares in Alfa closed at 14.55 pesos ($0.74) on Thursday

before the announcement.

The spin-off, exchange listing and share distribution should

be carried out next year, Alfa said.

Alfa executives had long complained of the firm being

weighed down by a so-called "conglomerate discount," in which

the firm as a whole was valued at less than its parts.

Before spinning off Alpek and Axtel, Alfa also spun off

automotive parts maker Nemak.

"This separation allows each business to be valued by the

market on the basis of its merits and individual potential,"

Alfa said.

Alfa will now focus in on its food subsidiary Sigma, it

said.

"The advantages of the food industry, the positioning of

Sigma's brands in all of the regions it serves and its constant

growth are some of the bases which will allow (Alfa) to reach a

higher valuation," the firm said.

($1 = 19.7930 Mexican pesos)