Grupo Alfa advances plan to sell telco arm Axtel

Grupo Alfa aims to sell Axtel

Mexican telecoms group Grupo Alfa was poised to sell its telecommunications arm Axtel, after seeing substantial interest from bidders, America Economia reported.

In a call reporting the company’s Q3 results, Axtel CEO Rolando Zubiran Shetler said the company received a multitude of “attractive” offers for its unit and has advanced to the second phase of its process to attract investors and strategic proposals for the purchase of Axtel and infrastructure unit Axtel Networks.

"After evaluating the proposals we received and seeking to maximize the creation of value for shareholders, we determined to continue with the process focusing on a potential transaction throughout the company, including both business units", said Shelter.

Parent company Grupo Alfa announced in August intentions to sell Axatel Networks or the whole of the company this year next depending on market conditions.

In a call with analysts, Alvaro Fernandez Garza, Alfa director-general said: "The strategic alternative that we are considering in the case of Axtel is that we believe that we will be able to close the transaction to sell the infrastructure business unit or the entire company very soon and very soon within 12 months”.

Axtel reported total revenues of MXN3,095 million ($146 million) in Q3 this year, a figure it stated was close to the figure reported in the same period last year.

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