Maxcom board gives nod to USD59m takeover by private equity firm

5 Dec 2012

Alternative Mexican fixed line and broadband provider Maxcom Telecomunicaciones has given the nod to MXN764 million (USD59 million) takeover bid tabled by private equity firm Ventura Capital Privado, Bloomberg reports. Under the terms of Ventura’s proposal it has offered to pay MXN2.90 per share for the entire holding in Maxcom, with the operator’s board and investors – which represent 44% of outstanding stock – having now approved the deal. Ventura will now reportedly launch a public tender for Maxcom’s shares, and 50% of the stock must be offered in order for the transaction to proceed; the deal is also dependent on a successful offer to exchange Maxcom’s USD200 million in 11% notes due in 2014 for new bonds the company plans to issue. The report cites a statement made by Venture regarding the proposed transaction as saying: ‘Maxcom has significant potential to continue growing and gaining market share in Mexico … With a stronger balance sheet as a result of the potential debt exchange and capitalisation, we plan to position the company as a leading niche telecommunications provider in the country.’

Ventura has pledged to inject around USD22 million in capital into the telco as part of the deal, with a view to helping Maxcom compete more effectively against the country’s dominant fixed line operator Telefonos de Mexico (Telmex), a unit of local billionaire Carlos Slim’s America Movil.

Mexico, Maxcom