Mexico’s Grupo Televisa has announced an investment of MXN7 billion (USD549 million) in convertible debt instruments which will allow it to acquire 95% of the equity interest of Tenedora Ares SAPI, which owns 51% of the equity interest of Cablecom. Ares, meanwhile, will reportedly have an option to acquire the remaining 49% interest in Cablecom at a value of approximately 9.3 times EBITDA of the 12-month period preceding the closing of such acquisition. Both transactions are subject to regulatory approval.
Cablecom offers pay-TV, fixed line broadband and fixed voice services In 16 Mexican states, while it also offers data, telephony, value added services (VAS) and virtual networks to corporate customers via a separate subsidiary. In announcing the proposed transaction Televisa noted that the bulk of Cablecom’s 1.2 million revenue generating units – 70% – are signed up to its pay-TV services, with the remainder split between voice and broadband services. It has been estimated that Cablecom’s revenue and EBITDA will reach MXN3.9 billion and MXN1.6 billion, respectively, in 2014.
If successful in obtaining approval for the deal, Cablecom will bolster Televisa’s telecoms holdings, with the group already holding stakes in cable operators Cablevision and Cablemas, both of which offer fixed voice and broadband services, as well as pay-TV. Further, in June 2012 Televisa confirmed it would accept conditions imposed by the local antitrust regulator Comision Federal de Competencia (Cofeco) on a deal to acquire a 50% stake in Mexican mobile operator Iusacell. To that end, that month it converted bonds issued by GSF Telecom Holdings SAPI de CV (GSF), which indirectly owns 100% of the share of Grupo Iusacell, into ordinary shares of GSF; as a result Televisa now holds a 50% equity stake in GSF.