Televisa to acquire Mexico's Cablecom
Grupo Televisa SAB agreed to acquire controlling stake in Mexico's Cablecom. The USD745 million transaction was seen to strengthen Grupo Televisa's grip on the pay-TV network.
The acquisition for Mexico's Cablecom included USD549 million in debt that was convertible to 95% stake in Tenedora Ares SAPI. The latter owns 51% of Cablecom as stated in today's filing. Televisa also bought MXN2.5 billion Ares debt as a part of the deal.
As more Mexicans sign up for cable and satellite subscription, the transaction was seen as a good strategy for Televisa to reduce its dependence on aired TV ads. Televisa, the world's biggest Spanish-language broadcaster, has spent billions in the past six years to separate stakes into a telecoms company and a wireless provider.
Televisa would add around 840,000 pay TV clients in Mexico once the convertible debt turns into control of Cablecom. This would be on top of its current 7.9 million satellite and cable users. However, the company still needs regulatory approval to takeover Cablecom.
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