Texas-based Transtelco Holding has confirmed that its Transtelco Acquisitions III subsidiary has agreed to acquire shares representing no less than 85% of the capital stock of Mexico City-based Maxcom Telecomunicaciones, pursuant to a public mandatory tender offer. As per the telco’s press release, the transaction implies an equity value of USD30.4 million.
In connection with the proposed acquisition, Transtelco has commenced a cash tender offer to purchase any and all of Maxcom’s outstanding 8% Senior Secured Notes (due 2024), for a total consideration of USD515 million. The acquisition is expected to close on or around 26 October 2021, subject to the satisfaction of the relevant conditions. Following completion of the acquisition, Maxcom will become an indirect subsidiary of Transtelco.
Headquartered in El Paso, Texas, Transtelco currently offers dedicated internet access, long-haul and metro transport and telephony services via a 15,000-mile fibre network that connects major cities including Los Angeles, Dallas, Tijuana and Mexico City. Maxcom, which launched in May 1999, presides over an 8,500km fibre-optic network and has PoPs in the main cities of Mexico.
According to TeleGeography’s GlobalComms Database, in August 2019 Maxcom and its subsidiary Maxcom USA Telecom filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the US Bankruptcy Court for the Southern District of New York. The restructuring of the company’s old notes was completed in October 2019 and the Chapter 11 cases were closed the following month, finalising the debt restructuring process.