Maxcom Says Evaluating Alternatives

Mexico telecom Maxcom, which is said to have hired Barclays to advise on a sale of the company, says it is “evaluating strategic options for its future” and is having “conversations with different participants in the market.” Research shop Banif-Ixe says that given the company’s cash problems, the company may be looking for a partner to inject capital and boost growth. The shop believes a sale of the entire company is a possibility and that the eventual buyer could pay a higher multiple than the one at which the share currently trades. At the close of the last session, the share traded at a 2010 estimated P/BV of 0.5x and an EV/Ebitda 10e of 6.0x. Telemar, Televisa Megacable Telefonica, Vivendi and Axtel are said to be potential bidders. Banif-Ixe adds that since regulation does not allow a foreign investor to hold more than 49% stake of a Mexican company, a foreign buyer would be limited to minority participation. Barclays is heard to be leading the process. A price of $400m-$500m is rumored, including debt.