MEXICO CITY, Dec. 26, 2016 (GLOBE NEWSWIRE) -- TV Azteca, S.A.B. de C.V. (BMV:AZTECA) (Latibex:XTZA), one of the two largest producers of Spanish-language television programming in the world, announced today that company shareholders, directly or indirectly, agreed to provide US$60 million to be invested in Azteca Comunicaciones Colombia — the TV Azteca telecommunications business in that country — in accordance with the terms defined in the General Ordinary Shareholder’s Meeting of November 16.
As previously announced, the Board of Directors of TV Azteca asked the CEO to update the valuation and prospects of telecommunications investments in South America in order to clarify the long-term strategic focus of the company.
The conclusion was that Azteca Comunicaciones Colombia requires a US$100 million short-term investment to develop last-mile infrastructure and reach a breakeven point, which could result in positive EBITDA going forward. TV Azteca has recently invested US$40 million in the business, thus, the additional capitalization required is US$60 million.
The company indicated it has alternative uses of cash in order to focus on its broadcast television business in Mexico, as well as in meeting future financial obligations.
Derived from this process, during the shareholders meeting of November 16 it was approved that all of the shareholders of TV Azteca who chose, could participate in the capitalization of Azteca Comunicaciones Colombia privately, and through the mechanism that TV Azteca determined for that purpose. Such participation in the investment could be up to 60% of the telecommunications company, and each shareholder could participate in the investment in proportion to their share in the capital of TV Azteca.
Shareholders agreed to provide US$60 million for such investment, and TV Azteca, which has recently invested US$40 million, will remain with a 40% equity stake of Azteca Comunicaciones Colombia.
As a result, the company will be able to further strengthen its efforts in the broadcast television business, which has encouraging perspectives, and improve its positioning in the Mexican media market.
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico, Azteca Trece and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca US, a broadcast television network focused on the rapidly growing U.S. Hispanic market, and Azteca Web, an Internet company for North American Spanish speakers.
TV Azteca is a Grupo Salinas company (www.gruposalinas.com), a group of dynamic, fast-growing, and technologically advanced companies focused on creating shareholder value, contributing to build the middle class of the countries in which they operate and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. The companies include TV Azteca (www.tvazteca.com; www.irtvazteca.com), Azteca US (us.azteca.com), Grupo Elektra (www.elektra.com.mx; www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Advance America (www.advanceamerica.net), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx), Totalplay (www.totalplay.com.mx) and Enlace TP (enlacetp.mx). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. However, the member companies share a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.
Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Other risks that may affect TV Azteca and its subsidiaries are identified in documents sent to securities authorities.
Tel. +52 (55) 1720-9167
TV Azteca, S.A.B. de C.V.
Tel. +52 (55) 1720-9167
Tel. +52 (55) 1720-1313 ext. 36553
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