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Televisa Pays $1.6 Billion for 50% of Mexican Phone Network

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Mexican TV broadcaster, Grupo Televisa has announced that it is buying a 50% stake in the local mobile network operator, Grupo Iusacell.

Under the agreement Televisa will invest USD1.6 billion for up to 50% equity stake in Iusacell; in a first stage, Televisa will make an investment of US$37.5 million in equity and USD1.56 billion in convertible debt of Iusacell. The latter is expected to turn into equity once the transaction clears regulatory approvals.

Proceeds from Televisa's investment are expected to be used to strengthen Iusacell's capital structure and operations, allowing it to finance growth, capex and improve service quality and coverage.

The move is Televisa's second attempt to enter the local wireless market after a planned USD1.4 billion investment in Nii Holdings (trading at Nextel) to build a 3G network broke down last year.

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Tags: iusacell  grupo televisa  nii holdings  Mexico