Alfa de CV : Axtel signs agreement to sell a portion of its FTTx mass market business to Televisa

December 17, 2018
Axtel signs agreement to sell a portion of its FTTx mass market business to Televisa

San Pedro Garza Garcia, N.L., Mexico; December 17, 2018 - ALFA, S.A.B. de C.V. (ALFA), announced today that its subsidiary Axtel, S.A.B. de C.V. (BMV: AXTELCPO) ('Axtel' or the 'Company'), a Mexican Information and Communication Technology (ICT) company, signed today a definitive agreement to sell its fiber mass market business (FTTx) located in Monterrey, San Luis Potosí, Aguascalientes, Ciudad de México, Ciudad Juarez and the municipality of Zapopan, to Grupo Televisa S.A.B. and affiliates ('Televisa') for 4,713 million pesos.

Axtel transferred 227,802 mass market customers, 4,432 km of FTTx fiber optic network and other FTTx mass market segment assets in these cities to Televisa.

The FTTx mass market business in the cities not contemplated in this transaction will be maintained and operated by Axtel. The Company will continue to seek attractive divestment opportunities for this asset.

'The execution of this transaction is in line with the Company's strategy of focusing on providing IT and value-added Telecom services to the enterprise and government segment', said Rolando Zubirán Shetler, Axtel's President. 'Net proceeds obtained from the transaction will be used to reduce indebtedness, contributing to a reduction in interest expenses and financial leverage. We are confident that further concentration in our business strategy and the improvement in our capital structure will result in value creation for our shareholders.'

About AXTEL
Axtel is a Mexican Information and Communication Technology Company that serves the enterprise, government and residential markets with a robust portfolio of solutions through its brand Alestra (enterprise and government services) and its brand Axtel (residential and small businesses services). With a network infrastructure of over 40 thousand kilometers of fiber and approximately 7 thousand square meters of data center space, Axtel enables organizations to be more productive and brings people together to improve their quality of life. As of February 15, 2016, Axtel is a subsidiary of Alfa, which owns 52.8% of its equity. Axtel's shares, represented by Ordinary Participation Certificates (CPO's), trade on the Mexican Stock Exchange under the symbol 'AXTELCPO' since 2005.

About ALFA
ALFA is a holding company that manages a portfolio of diversified subsidiaries: Sigma, a leading multinational refrigerated food company, focused on the production, marketing and distribution of quality foods through recognized brands in Mexico, Europe, United States and Latin America. Alpek, one of the world's largest producers of polyester (PTA, PET and fibers), and the leader in the Mexican market for polypropylene, expandable polystyrene (EPS) and caprolactam. Nemak, a leading provider of innovative lightweighting solutions for the global automotive industry, specializing in the development and manufacturing of aluminum components for powertrain, structural components and for electric vehicles. Axtel, a provider of Information Technology and Communication services for the enterprise, government and mass market in Mexico. Newpek, an oil and gas exploration and production company with operations in Mexico and the United States. In 2017, ALFA reported revenues of Ps. 317,627 million (US $16.8 billion), and EBITDA of Ps. 38,312 million (US $2.0 billion). ALFA's shares are quoted on the Mexican Stock Exchange and on Latibex, the market for Latin American shares of the Madrid Stock Exchange.

Contact:

Luis Ochoa Reyes
Vice President, Corporate Communications
ALFA, S.A.B. de C.V.
[phone]
[e-mail]