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Megacable rejects Televisa merger offer

16 Dec 2022

Megacable Holdings has rejected a merger offer from Mexican media conglomerate Grupo Televisa, arguing its current business plan offers better prospects. The unsolicited offer was made on 14 November, but only became public this month. According to Bloomberg, Megacable informed Televisa of its decision earlier this week, emphasising that the business is not for sale.

As previously reported by CommsUpdate, the transaction was pitched as a stock-for-stock deal, and would have resulted in Megacable’s shareholders owning roughly 45% of the merged company with Televisa holding a 55% stake. Megacable would remain publicly listed as the entity surviving the merger.

TeleGeography notes that while Megacable is Mexico’s largest cable broadband operator by subscriptions, Grupo Televisa owns stakes in five different cablecos, namely: Cablemas (Izzi/Wizz), Cablevision (Izzi), Television Internacional (Izzi/Wizz), Cablecom (Wizzplus) and Cablevision Red (Izzi/Wizz). It is assumed that all units were included in the merger proposal.

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