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Mexico`s Alfa To Buy AT&T`s Stake In Telecom Unit Alestra


15/04/2011

-Mexican conglomerate Alfa SAB (ALFA.MX) said Friday it will buy partner AT&T Inc.`s (T) 49% stake in telecommunications company Alestra, lifting Alfa`s stake to 100%.

Increasing our stake in Alestra will give us the opportunity to strengthen our strategy based on advanced IT and telecommunications solutions with an emphasis on the new generation of cloud services for the Mexican enterprise market and will open up additional strategic options for us, said Alejandro Elizondo, Alfa`s senior vice president for development, in a press release.

Terms of the acquisition weren`t disclosed.

Alestra is the smallest of Alfa`s four businesses, which also include petrochemicals, auto parts and processed foods. Alestra offers data transmission, Internet, IT security, hosting and other services along with local and long-distance telephony, serving 200 cities in Mexico. Its main focus is on value-added corporate services, where growth has been compensating for declines in traditional phone use.

Alestra had revenue of $96 million for the first quarter of this year, and $361 million for all of 2010.



 

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