Business · Companies · 15 hrs ago
Telefónica weighs loan to help consortium buy its Mexico unit
Telefónica is considering lending money to the group buying its Mexican unit to help complete the sale.
The agreed price is $450 million, and the possible loan would let the buyer finance some of the purchase.
The buyer, Melisa Acquisition, is led by Oxio and Newfoundland Capital Management.
Mexico’s competition regulator approved the deal in late September, clearing a key legal hurdle and giving the companies up to a year to complete the transfer.
Telefónica has struggled to grow its share in Mexico and is reducing its presence across Latin America to focus investment on Spain, Germany, the United Kingdom and Brazil.
The parties are still negotiating the loan’s terms, collateral and guarantees before the transfer of control and the Movistar Mexico network can move into its final stage.
Telefónica is considering lending money to Melisa Acquisition to help it complete the purchase of Telefónica’s Mexican unit for $450 million.
The consortium is led by Oxio and Newfoundland Capital Management.
The proposed loan is being discussed as the parties work out how to structure the payment agreed in April.
Mexico’s antitrust regulator approved the transaction in late September.
Telefónica has not commented on the possible loan amount or interest rate, and Oxio and Newfoundland Capital Management did not respond to requests for information.
- Who
- Telefónica and Melisa Acquisition, a consortium led by Oxio and Newfoundland Capital Management.
- What
- Telefónica is considering a loan to help the consortium buy Telefónica’s Mexican unit for $450 million.
- When
- The sale was agreed in April; the loan is now under consideration.
- Where
- Mexico.
- Why
- The financing could help the consortium complete the purchase. The parties are negotiating how to structure the payment.
This story does not have two clearly opposing sides.
Telefónica and Melisa Acquisition agreed on a $450 million sale of Telefónica’s Mexican unit.
Mexico’s antitrust regulator approved the transaction.
The parties are discussing payment arrangements and negotiating collateral commitments and guarantees for a possible loan.
- Sale price
- $450 million
- Buyer
- Melisa Acquisition, led by Oxio and Newfoundland Capital Management
- Regulator
- Mexico’s Comisión Nacional Antimonopolios approved the transaction in late September
- Transfer deadline
- The regulator’s decision gives the companies up to one year to formalize the operational transfer of Movistar México