Kio Networks is exploring a disposal that could value the Mexican data centre operator at USD 1.00 billion, people familiar with the matter told Bloomberg.
According to the sources, the business is working with an advisor to solicit interest from possible buyers.
Kio Networks is backed by billionaire Maria Asuncion Aramburuzabala’s family office – Tresalia Capital – and may still decide against a deal, the insiders observed.
The group depends on the Mexican government as a client, which could result in less investor interest and reduce the possible valuation, the people noted, asking not to be identified as the situation is still private.
Kia Networks, previously known as Sixsigma Networks Mexico, was acquired by American Tower Corporation for USD 500.00 million in 2017.
At the time, the group had more than 50,000 concrete poles and an estimated 2,100 miles of fibre located in Mexico’s key urban centres.
According to its website, Kio Networks has 29 core data centres and 11 edge data facilities across five countries.
Bloomberg observed that data centres have not been significantly affected by the coronavirus pandemic due to ongoing demand for services from customers.
The Aramburuzabala’s family wealth came from the USD 20.00 billion sale of its stake in brewer Grupo Modelo – the maker of Corona and Negra Modelo beer – to Anheuser-Busch InBev in 2013.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 62 deals targeting companies based in Mexico announced in 2020 to date.
In the largest of these, AlphaCredit completed a series B round of funding led by Softbank, raising MXN 2.40 billion (USD 106.78 million) in proceeds.
Other Mexican companies targeted in 2020 include Viajes Beda, Elavon Merchant Services Mexico, Universal Scientific Industrial De Mexico and Samcarsa de Mexico.
© Zephus Ltd