UPDATE 3-Alfa to buy Axtel in new Mexico telecoms consolidation
(Adds details on sales, market cap, comment from Alfa executive)
MEXICO CITY Oct 1 (Reuters) - Mexican industrial conglomerate Alfa said on Thursday it would buy a majority stake in telecoms company Axtel in order to better rival Carlos Slim's America Movil, which dominates Mexico's fixed-line phone market.
Alfa, which is merging Axtel with its Alestra unit, will own 51 percent of the new company once new shares are issued. Axtel will remain traded on Mexico's stock exchange, the two firms said in a joint statement.
The statement did not include financial terms for the deal.
Together, Alestra and Axtel will have a fixed-line market share of less than 6 percent, according to regulator statistics, a tenth of the dominant player Slim's America Movil.
Thomson Reuters data shows Axtel has a market capitalization of $590 million and debt of some $544 million, according to its most recent results.
Alestra reported sales of $97 million for the second quarter of this year, while Axtel had revenue of some $150 million.
The new firm is expected to have sales in the order of 14 billion pesos to 14.5 billion pesos ($828.4 million to $858 million) a year, Alfa's development director Alejandro Elizondo told Reuters, adding that he expected the companies to be fully integrated within two years.
An Axtel spokesman did not immediately respond to a request for comment. Continuación...