Mexico’s largest satellite-TV operator Grupo Televisa has paid Ps8.55bn (US$653.96m) to buy the remaining 49% of local fixed-line group Cablecom.
Televisa, which had the option to take over the group since buying a 51% stake last year, has already been…
Mexico’s largest satellite-TV operator Grupo Televisa has paid Ps8.55bn (US$653.96m) to buy the remaining 49% of local fixed-line group Cablecom.
Televisa, which had the option to take over the group since buying a 51% stake last year, has already been flagged for having a “dominant” position in free-to-air TV.
As a result, the country’s new beefed-up regulator, the Federal Telecommunications Institute (IFT), has imposed a number of measures to increase competition, such as forcing Televisa to share broadcasting infrastructure with third parties.
The group’s move for the rest of Cablecom comes as IFT carries out a separate review to decide whether it has “substantial power” in pay-TV.
Mexico has unleashed a series of reforms across its industry to break up monopolies. However, Televisa may be able to complete its Cablecom deal without getting regulatory approval because of a provision in the new law that lets companies bypass the process if their combined market share does not exceed 20% of the telecoms industry, reported Bloomberg.
Televisa’s Cablecom play initially came about in August 2013, when it paid Ps7bn (US$536m) for convertible debt instruments that would enable it to buy a 95% stake in Tenedora Ares, which in turn had a 51% equity interest in Cablecom. Ares also had the future option of buying the rest of Cablecom for around 9.3 times its EBITDA for the 12 months prior to closing such a deal.
As part of the original deal, Televisa also bought roughly Ps2.5bn (US$191m) of debt issued by Ares.
Televisa’s biggest rival is Carlos Slim’s América Móvil, which controls about 80% of the fixed-line and 70% of the mobile market but is barred from offering pay-TV in Mexico.
