Mexican fixed-line player Axtel would like to seize M&A or partnership opportunities, but has yet to make any such agreement, the company said.
In a filing with the Mexican stock exchange yesterday, the company played down local press reports suggesting…
Mexican fixed-line player Axtel would like to seize M&A or partnership opportunities, but has yet to make any such agreement, the company said.
In a filing with the Mexican stock exchange yesterday, the company played down local press reports suggesting the operator was close to being sold to, or merged with, one of its rivals.
“Regarding this topic, the company clarifies that it does not have any formal agreement in place at present and continues to be focused on the day-to-day execution of its business strategy,” Axtel said.
During an earnings call on 30 April, Axtel CFO Felipe Canales said the company was in “exploratory conversations” with potential bidders, adding that talks were more advanced with one of the suitors, which reportedly include Alestra, a unit of Grupo Alfa, triple-play operator Megacable, Grupo Salinas and AT&T, which earlier this year acquired Nextel Mexico and Iusacell.
“It will be more likely to be a first-step consolidation [deal] with smaller or similarly sized players, and eventually we might see a potential acquisition by a major player,” Canales explained, in response to an analyst question about the size of the likely buyer.
Broadcasting giant Grupo Televisa, which has a dominant positon in the satellite and cable TV markets, and Spain’s Telefonica, which operates in Mexico under the Movistar brand, have also been rumoured as potential candidates.
Last month, Telefonica and Axtel agreed to settle their interconnection disputes for the period 2005-2011, and also inked an infrastructure sharing agreement.
In March, Axtel received Ps950m (US$62m) in compensation from America Movil, after settling interconnection claims relating to the 2005-2015 period.
As part of the settlement, Axtel gained access to the passive infrastructure belonging to AMX’ wireless carrier Telcel and fixed-line unit Telmex. Furthermore, it signed a similar deal with number three carrier Iusacell, soon to be merged with Nextel under new owner AT&T.
Axtel posted a 19% year-on-year decrease in Q1 15 revenues, from Ps2.9bn (US$187m) to Ps2.4bn (US$155m). The company is focused on reducing debt, which stood at Ps11.7bn (US$756m) as of 31 March 2015.
