Axtel looking to generate cash via infrastructure sale?

13 Aug 2012

Mexican alternative fixed line and broadband provider Axtel is reportedly mulling the sale of either its wireless broadband towers or long-distance fibre network with a view to raising as much as USD300 million, with any funds generated expected to be used to avoid defaulting on debts. According to Bloomberg Businesweek, which cites Axtel’s investor relations director Adrian de los Santos, it is understood that the telco is examining the possibility of selling the infrastructure and then renting access as part of a sale-leaseback deal, although no timeframe for such action has been outlined. The move, it is claimed, comes as Axtel seeks to generate cash after cutting tariffs in order to fight off competition. The company is reportedly required to repay around USD825 million of debt by 2019, according to data compiled by Bloomberg.

Mexico, Axtel