Ventura Capital Privado acquires 44.69% stake in Maxcom

30 Sep 2013

Just over a month after Ventura Capital Privado confirmed it had offered close to USD60 million to acquire Mexican alternative fixed line operator Maxcom, according to Reuters a deal has now been reached. Citing a stock exchange filing, the report claims that that a group of investors led by the Mexican private equity firm has acquired a 44.69% in the telco after concluding its tender offer.

As previously reported by CommsUpdate, in December 2012 Maxcom approved a MXN764 (USD58 million) million takeover bid tabled by Ventura, but by April 2013 it was revealed that Maxcom was examining operational and financial alternatives, including bankruptcy, following news that the takeover had collapsed; only 61.93% of old notes were tendered in a bond exchange, not enough to complete a swap, which was a requirement for an equity offer from Ventura Capital. Subsequently, in early July 2013 Maxcom confirmed a revised deal with Ventura and a group of debtholders under which it would restructure, with Ventura taking control of the telco; as per the agreement Ventura and related parties said they would offer MXN2.90 (USD0.22) per share for Maxcom, while the private equity firm would contribute USD45 million in capital to the company. Meanwhile, bondholders representing USD84 million of Maxcom’s USD200 million in notes due next year agreed to a Chapter 11 bankruptcy plan that included a swap for debt maturing in 2020.

Mexico, Maxcom