Carlos Slim’s America Movil (AMX) has launched its public tender offer for all outstanding shares in Telekom Austria (TA) not already held by itself or partner shareholder Austrian state holding company OeIAG.
As previously announced, the Mexico-based…
Carlos Slim’s America Movil (AMX) has launched its public tender offer for all outstanding shares in Telekom Austria (TA) not already held by itself or partner shareholder Austrian state holding company OeIAG.
As previously announced, the Mexico-based telco is offering €7.15 (US$9.80) per share in cash, bringing the total cost of the buyout to about €1.4bn (US$1.9bn) if all shareholders tendered their shares.
OeIAG and AMX inked a shareholders’ pact in April which pooled their respective 28.4% and 26.4% stakes, triggering a mandatory takeover bid under Austrian law.
TA shareholders have eight weeks from today – 15 May – to tender their shares, the deadline being 10 July.
Under the terms of the shareholders’ agreement, OeIAG’s stake in the Austrian incumbent will drop to a blocking minority of 25% plus one share. However, the holding has the right to nominate the telco’s CEO and supervisory board chairman. The agreement runs for 10 years with a possible five-year extension and will see AMX take on operational responsibilities at TA once the necessary approvals are in place.
AMX and OeIAG have also agreed to support a €1bn (US$1.38bn) capital increase at the Vienna-based telco.
TA CEO Hannes Ametsreiter described the signing of the shareholders’ pact last month as a new chapter in the company’s history, saying it demonstrates their long-term commitment and cooperation.
Meanwhile, AMX CEO Daniel Hajj said it would position TA as a more “relevant” player in European telecoms, better enabling it to take advantage of growth opportunities.
