Televisa Prefers Cash for Nextel Buy

Mexico’s Televisa says it has no immediate plans to finance its purchase of a 30% stake in Nextel Mexico agreed Monday with new debt or equity. “We have cash on hand,” executive VP and board director Alfonso De Angoitia says on a conference call. Televisa’s December 2009 cash and marketable securities stood at $3.3bn, according Moody’s. The issuer, however, is likely to receive proposals for financing, given its strong standing with the market and the fact the full spend would eat up close to half of its cash and cash equivalents. When asked about plans for partnering in Nextel International’s other markets, De Angoitia adds the focus for Televisa’s interest in entering the wireless sector is limited to Mexico at this point. Televisa agreed to pay $1.44bn in cash for the stake, with an option for an additional 7.5%. The deal is conditional on Nextel and Televisa being awarded spectrum licenses in a May auction in Mexico. Seller NII Holdings was advised by Lazard, while Allen & Co helped Televisa. Moody’s says the transaction will not affect Televisa’s Baa1 ratings, noting a strong liquidity position and a comfortable debt profile.