Axtel sells a portion of its business to Televisa

Mexican telecommunications company Axtel announced that it has signed a definitive agreement to sell a portion of its fiber (FTTX) mass market business, for MX$ 4.7 billion (USD 234.5 million), to Grupo Televisa.
In a press release, Axtel said it has transferred 227,802 mass market customers, 4,432 km of FTTx fiber optic network and other FTTx mass market segment assets in in Monterrey, San Luis Potosí, Aguascalientes, Ciudad de México, Ciudad Juarez and the municipality of Zapopan, to Televisa.
‘The execution of this transaction is in line with the Company’s strategy of focusing on providing IT and value-added Telecom services to the enterprise and government segment’, said Rolando Zubirán Shetler, Axtel’s President.
“Net proceeds obtained from the transaction will be used to reduce indebtedness, contributing to a reduction in interest expenses and financial leverage. We are confident that further concentration in our business strategy and the improvement in our capital structure will result in value creation for our shareholders,” the executive added.