Thursday , August 5 2021

This is the value of Axtel, for the sale prepared by Alfa

Him Alfa industrial group negotiates the sale of Axtel with outsourced companies. The operation means a divestment close to this Monterrey conglomerate in the telecommunications sector to focus on sectors like automotive segment go petrochemical, where he obtained better results through Alpek.

Axtel had a pleasant year in 2020. Its shares were traded on Friday at 8.04 pesos per share, compared to 3.05 pesos on the first business day of the year and its revenue was not as impacted by the effects of the coronavirus pandemic, since the difference between third quarter of 2020 and the third of 2019 is 72 million pesos. Axtel entered 3.095 million pesos between July and last September. The company’s net loss in that period was 174 million pesos and, a year ago, the loss was 351 million pesos.

The company has also started a process of separating its services and infrastructure businesses to achieve a greater degree of financial efficiency since the first quarter of 2020.

At the same time, it began to abandon its massive triple-play service offering, selling video, voice and data subscribers, or a combination of them, to Megacable Y Televisa.

The sale of Axtel may take place in the first months of 2021 and Alfa estimates that the operation will allow that group to reduce its general debt and pay dividends to its investors.

It is not clear who could be the new owner of Axtel. Equinix, Purchase, Centurylink, Neutral Networks Y MegacableThey would be actors who would make sense to take over the assets of that operator, although it has also been said for some time that AT&T would be interested in Axtel for its fixed infrastructure.

Axtel’s value is beyond its traditional telecommunications products, as these fell 8.0% overall in the third quarter and 32% in particular for voice service. In contrast, Axtel achieved a 39% increase in sales of its information technology services, as its applications hosted in the cloud and cybersecurity grew 41% between July and September.

Alfa believes that in value-added products there is an opportunity to place Axtel as the best supplier:

“The accumulated flow reached 77% of our guidance for the year, showing the solid consistency of the company’s Axtel Networks, our Infrastructure unit and a strong focus on IT solutions and collaboration at Alestra, our Services unit, taking advantage of the digital transformation opportunity presented by the pandemic ”, said the company.

“During the third quarter, we moved to the second phase of the competitive process of attracting investors and strategic proposals for Axtel Networks (…) We received a double-digit number of attractive non-binding proposals for both alternatives. After evaluating them, and seeking to maximize the creation of shareholder value, we decided to continue the process, focusing on a potential transaction across the company, including the two business units, ”he said.

Based on this intention, Axtel invested 1,486 million pesos until September in infrastructure development, 295 million pesos more for the investment in networks in 2019. Meanwhile, the company’s net debt decreased by 22% or 170 million dollars in the third quarter and stood at $ 595 million.

This resource management allowed Axtel to have a network of 41,000 kilometers of fiber optic backbones and 18,600 kilometers of metropolitan ring networks, in addition to 1,055 locations to increase the fiber network and national coverage, which could be of interest to third parties.

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