Televisa and Megacable talk about a merger of their fixed telecommunications businesses

Televisa Group hold conversations with Megacable Holdingswith the aim of combining its fixed telecommunications businesses in a single entity, which includes the brands Izzi Telecom y Megacableconfirmed Grupo Televisa in a statement sent to its investors on the Mexican Stock Exchange (BMV).

Televisa indicated that on November 14, it presented a non-binding proposal for consideration by the board of directors of Megacable Holdingsa company that this year began an additional deployment of investment for 2,000 million dollars to expand its fixed networks throughout the country.

The new company would generate synergies for up to 19,000 million pesos per year.

Televisa’s proposal contemplates a merger, through an exchange of shares with a premium of approximately 19% for Megacable shareholders, in which the shareholders of Megacable and Televisa would own approximately 45% and 55% of the company. combined”, reported Televisa Group.

Televisa Group said that the proposal also includes the possibility that, at the closing of the transaction, the shareholders of Megacable receive a special cash dividend for approximately 14,800 million pesos.

Meanwhile, he assured Televisa, Megacable It would continue to be listed on the Mexican Stock Exchange (BMV) as the entity resulting from the merger.

“The company believes that the proposed transaction can represent significant benefits for both companies and their shareholders. The combination would create a leading cable operator in Mexico, better positioned to compete in a highly competitive market,” Televisa said.

The combined company is expected to have a stronger pro forma financial scale with accumulated revenues through the third quarter of this year of approximately 75,000 million pesos and EBITDA of approximately 33,000 million pesos, and will jointly have close to 29 million homes passed and 11 million subscribers.

“By combining its modern fiber optic infrastructure, complementary geographic coverage, financial resources, and skilled management teams, the combined business could more efficiently realize capital investments (Capex), accelerate growth, and increase broadband service penetration, simultaneously benefiting subscribers,” said Televisa in the statement.

(With information from Nicolás Lucas.)

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