In the latest of a long line of developments regarding the fate of Mexican fixed line operator Maxcom, private equity firm Ventura Capital Privado has confirmed that it has offered close to USD60 million to acquire the operator. According to Reuters, it is understood that, as part of Maxcom’s restructuring process, Ventura has offered up to MXN763.8 million (USD58.87 million) for the Mexican operator, with the offer set to expire on 26 September 2013.
As previously reported by CommsUpdate, in December 2012 Maxcom approved a MXN764 million takeover bid tabled by Ventura. With the operator’s board and investors – which represented 44% of outstanding stock – having given the go ahead to the deal at that date, Ventura said it would launch a public tender for Maxcom’s shares, with 50% of the stock needing to be offered in order for the transaction to proceed; the deal was also dependent on a successful offer to exchange Maxcom’s USD200 million in 11% notes due in 2014 for new bonds the company plans to issue. Ventura, meanwhile, also pledged to inject around USD22 million in capital into the telco as part of the deal, with a view to helping Maxcom compete more effectively against the country’s dominant fixed line operator Telefonos de Mexico (Telmex). However, in April 2013 it was revealed that Maxcom was examining operational and financial alternatives, including bankruptcy, following news that the takeover had collapsed, after only 61.93% of old notes were tendered in a bond exchange, not enough to complete a swap, which was a requirement for an equity offer from Ventura Capital.
Subsequently, in early July 2013 Maxcom confirmed that it had reached a revised deal with Ventura Capital Privado and a group of debtholders under which it would restructure, with Ventura taking control of the telco; as per the agreement Ventura and related parties said they would offer MXN2.90 (USD0.22) per share for Maxcom, while the private equity firm would contribute USD45 million in capital to the company. Meanwhile, bondholders representing USD84 million of Maxcom’s USD200 million in notes due next year agreed to a Chapter 11 bankruptcy plan that included a swap for debt maturing in 2020