Mexican fixed-line operator Maxcom Telecomunicaciones is the subject of a Ps764m (US$59m) tender offer from private equity firm Ventura Capital Privado.
According to an SEC filing the cash offer is for 100% of the shares at Ps2.90 (US$0.22) per…
Mexican fixed-line operator Maxcom Telecomunicaciones is the subject of a Ps764m (US$59m) tender offer from private equity firm Ventura Capital Privado.
According to an SEC filing the cash offer is for 100% of the shares at Ps2.90 (US$0.22) per share.
The offer represents a discount of roughly 20% on Maxcom’s closing price on Tuesday of Ps3.62 (US$0.28).
As part of the deal Ventura would recapitalise the struggling operator to the tune of Ps285m (US$22m).
After seeking advice from HSBC the board accepted the bid and recapitalisation.
So far 44.29% of shareholders have taken up the PE firm’s offer, which is conditional on more than 50% of the telco’s shares being tendered.
The offer is also contingent on the successful completion of an offer to exchange Maxcom’s outstanding 11% senior notes due 2014 for new notes to be issued by the company.
“A new group of investors, alongside a stronger balance sheet and additional resources, should translate into growth and profitability for the company,” said Jacques Gliksberg, Maxcom’s chairman.
Maxcom offers voice, internet and cable services. Its share price has dropped more than 80% over the last five years.
The operator’s CFO, Miguel Cabredo Benites, resigned last month after twelve years at the company citing personal reasons. Maxcom’s CEO Salvador Alvarez has assumed his responsibilities.
Ventura plans to position the company “as a leading niche telecommunications provider in the country”, the PE firm said in a statement.
