C-TEC Acquires 40% Stake In Megacable

Unfazed by economic turbulence south of the border, C-TEC of Princeton, N.J., has inked an $84 million investment deal with Megacable, Mexico’s second-largest wired cable operation.

A small cable TV and telephone company, C-TEC will gain a 40% stake in the Los Mochis-based operator once government OK is granted.

The Jan. 25 edition of the Wall Street Journal called the deal the first major equity investment in Mexico since the economic crisis began in December. Owing to the peso’s nearly 40% devaluation against the U.S. dollar, the purchase was renegotiated from an initial offer of $120 million.

Megacable runs 12 systems with a total of 174,000 subscribers, chiefly in northwestern Mexico and also in Guadalajara, the nation’s second-largest city.

Megacable CEO Enrique Yamuni says the Guadalajara concession has particular potential, since the license covers an area of 1.9 million inhabitants but the infant system has just 34,000 subscribers.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Scene News from Variety