A private equity consortium led by Ventura Capital Privado has acquired a 45 percent stake in Maxcom, a struggling Mexico-based competitive provider, reports Reuters.
Ventura initially offered up to $60 million to acquire all of Maxcom as part of a broader restructuring effort.
In December 2012 Maxcom agreed to be acquired by Ventura for $58 million. Later, Maxcom said it was looking at other operational and financial alternatives, including filing for Chapter 11 protection, which it eventually did in July.
Earlier this month, the U.S. Bankruptcy Court for the District of Delaware approved a prepackaged bankruptcy plan for Maxcom.
Maxcom has struggled to compete with America Movil (NYSE: AMX), Mexico's incumbent telco that today controls over 80 percent of the country's telephone lines.
However, the competitive provider could benefit from the government's move to eliminate a 49 percent cap on foreign ownership in the country's service providers.
For more:
- Reuters has this article
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