And while the proposed acquisition can be criticized for a lack of transparency - business types will ask: will it make BTL more profitable?
Well, the business case can be made for acquiring SMART but what about those Cable companies?
Somehow the value of these companies seem to have suddenly appreciated over time despite cable being in a global downturn.
The Chairman says the profitability lies in the "content":
Jules Vasquez
"In 2020 I believe Centaur was offered to this same company for under 15 million and I know they are paying close to 25 million in this package. Southern Cable Network, I know, was sold for under 5 million. Close to 5 million. And I'm told it's been put in this package for ten. I know factually that central television and internet, NextGen was offered to this company in 2018 - negotiations were held for 36 million, I believe. And now it's upwards of in the vicinity of 50 million."
"These are cable companies. These are dinosaurs."
"How is it that their value has appreciated so significantly in these years of cable decline worldwide?"
Mark Lizarraga, Chairman - BTL Board
"Okay, let me let me tell you something. First of all, these companies are not in our view cable companies. We're focused more on the broadband side, on the fiber. These companies have been, as you well know, moving over to our fiber backbone and fiber infrastructure."
"So they're first of all, they're not cable. We call them content over fiber now. IThat's that's that's the drift. That's where's going."
"So what has a significant value for us quite frankly, is the customer base. And the cash flows."
Jules Vasquez
"Sir you didn't answer my question on profitability though."
Mark Lizarraga, Chairman - BTL Board
"Well I was going to ask or Mr Magana because I haven't looked at all, this is their responsibility. I just get the the global picture."
