Axtel sells its fiber optic business to Megacable in USD 60 million

Mexican telecommunications company Axtel ran an agreement to sell its fiber optic business to Megacable in Guadalajara, Leon, Puebla, Queretaro and Toluca. The transaction, which is effective since last May 1st, made Megacable to add 55 thousand residential customers and micro-business, 1,370 fiber optic network kilometers and other assets related to the mass segment operation in those cities.

‘With this operation we are finishing the mass market business divestment process , as part of our strategy to focus entirely on the business and government segments’, said Rolando Zubiran, Axtel’s CEO, officially in a statement. He added that ‘the transaction’s net resources will be used to reduce debt and other liabilities, contributing to improve our capital structure and reduce financial expenses’.

The transaction was valued at USD 60 million. In addition, Megacable announced that the integration process will be transparent for users and that the service will not be affected.