Mexican fixed line operator Axtel has signed a definitive agreement for the divestment of its fibre-optic business in Leon, Puebla, Toluca, Guadalajara and Queretaro to domestic rival Megacable, for MXN1.15 billion (USD60.40 million). The transaction – dated 1 May 2019 – will see 55,000 residential and micro-business customers, and around 1,370km of fibre, transferred to Megacable. The deal has been submitted to the Federal Telecommunications Institute (Instituto Federal de Telecomunicaciones, IFT) for approval.
Rolando Zubiran Shetler, CEO of Axtel, commented: ‘With this operation, we are concluding the divestment process of the mass market business, as part of our strategy to focus totally on the business and government segments … The net resources of the transaction will be used to reduce debt and other liabilities, contributing to improve our capital structure and reduce financial expenses.’
As previously reported by TeleGeography’s CommsUpdate, in December 2018 Axtel agreed to divest part of its fibre business to domestic media conglomerate Grupo Televisa. That deal included 227,802 residential and small business customers and encompassed 4,432km fibre in Monterrey, San Luis Potosi, Aguascalientes, Mexico City, Ciudad Juarez and Zapopan. The initial transaction was valued at MXN4.71 billion.