Court approves Ertach sale to Telmex

21 Jun 2007

BNamericas, quoting newspaper El Cronista, reports that an Argentine court handling the debt restructuring process of local investment group Sociedad Comercial del Plata (SCP) has authorised the sale of SCP’s broadband provider Ertach to Mexican telecommunications giant Telmex. A preliminary deal for the sale of Ertach for USD22.5 million was signed last August. In 2004, SCP had acquired a 65% stake in Ertach from Luxembourg-based Millicom International Cellular for USD2 million. Ertach’s management believe the company is very valuable to Telmex because it has an extensive network, ideal for offering broadband to SME and residential customers in areas where Telmex is not present.