Maxcom Falls as Tender Terms Modified to Usher in Takeover

Maxcom Telecomunicaciones SAB fell in U.S. trading after the Mexican telephone carrier modified terms of a bond swap and tender offer to ensure its private-equity takeover will be completed.

The company’s American depositary receipts declined 3.9 percent to $2.48 at the close in New York. Mexico’s stock market was closed today for a holiday.

Maxcom amended its deal with Ventura Capital Privado SA after failing to get the 90 percent acceptance it sought for the exchange of its bonds due in 2014 for notes due in 2020, according to a statement yesterday. As a result, the acceptance rate of 61.4 percent reached yesterday will be enough to consummate the transaction. The Mexico City-based company also extended the exchange deadline until April 10.

The takeover comes with a cash infusion of about $45 million, helping the company make more investments to compete against billionaire Carlos Slim’s America Movil SAB. Maxcom has less than 5 percent of Mexico’s landlines, compared to America Movil’s 80 percent.

Ventura also agreed to waive a requirement that holders of more than 50 percent of Maxcom shares accept its tender offer of 2.90 pesos a share. Maxcom closed yesterday at 4.57 pesos in Mexico City, indicating most investors weren’t willing to accept Ventura’s price.

Only 45 percent of shares had been tendered as of yesterday, Maxcom said. The company had said when the deal was announced Dec. 4 that holders of 44 percent of the stock had conditionally agreed to sell at the offer price.

The share offer was also extended until April 10.

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