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.