Alfa, S.A.B. de C.V. (BMV:ALFA A) (Grupo Alfa) fails to go through with the sale of Axtel, S.A.B. de C.V. (BMV:AXTEL CPO), prospects for the battered telco are positive on the back of rising demand for telecom infrastructure, Axtel's acting Chief Executive Officer Eduardo Escalante told investors. "It's important to note that Alfa's unlocking value strategy is not entirely dependent on the potential sale of Axtel," Escalante said during the group's Fourth Quarter earnings call. He added, however, that the company remains committed to closing a deal, which "we view as an attractive option under the right conditions towards our objective.

"Alfa first announced in October 2020 a competitive process to sell both Axtel and Alestra, the ICT services business unit for companies and government, with the goal of deleveraging the group. Since then, however, the conglomerate has not been able to advance the sale, despite claiming that it has seen and continues to see "multiple parties" interested in the telco. Escalante attributed the unsuccessful negotiations to "global uncertainty, volatility and changes in the industry," as well as to an undervaluation of the company in the proposals that have been received.

He said Axtel is continuing discussions with potential buyers.