RCN Corporation of the US has reached an agreement to sell its stakes in Mexican cable operator Megacable and its sister company, telephony provider Megacable Communicaciones de Mexico (MCM), for USD350 million before tax, including USD300 million in cash. RCN will sell its 48.93% stakes in both companies to fellow shareholder Teleholding, a local conglomerate specialising in communications investments. Both boards have approved the sale and the transaction is expected to be finalised by the end of the month.
Guadalajara-based Megacable, was born out of the merger of two smaller cablecos VICASIN and VICASON and today operates one of Mexico’s largest cable television systems – a 96% two-way HFC network covering 38 major cities – and also provides broadband internet access in more than 15 cities under the banner Meg@Red. Mexico City-based MCM was spun off from Megacable in November 2001 and holds a permit to operate a broadband network in Mexico City, Monterrey and Guadalajara. It provides local voice telephony and high speed data transmission services, principally to commercial customers.