Carlos Slim’s America Movil (AMX) is to pay €743m (US$1.01bn) for the 23.47% stake in Telekom Austria (TA) obtained in its buyout offer, boosting its stake to 50.8%.
AMX said in a statement that nearly 104 million shares in the Austrian incumbent,…
Carlos Slim’s America Movil (AMX) is to pay €743m (US$1.01bn) for the 23.47% stake in Telekom Austria (TA) obtained in its buyout offer, boosting its stake to 50.8%.
AMX said in a statement that nearly 104 million shares in the Austrian incumbent, representing the 23.47% stake, were tendered during the offer period, which ended on 10 July.
Upon settlement, the Mexico City-based telco will hold about 225 million shares in TA, giving it the majority stake.
AMX launched the mandatory offer for all outstanding shares after signing a syndicate agreement with Austrian state holding company OeIAG in April. The agreement, which pooled AMX’s and OeIAG’s then 26.8% and 28.4% stakes respectively, received regulatory approval in Austria and other relevant markets in June. Upon completion of the tender offer, the syndicate will hold 79.2% of TA’s shares.
The telco intends to pay the €7.15 per tendered share by 24 July via its payment agent, UniCredit Bank Austria.
The offer acceptance period will be extended for an extra three months for TA investors who have not yet tendered shares.
The end of the tender period comes as AMX prepares to sell assets in Mexico, where it is the dominant player in the fixed and mobile markets, to meet the country’s strict new telecoms regulations.
AMX expanded into Europe in 2012, acquiring stakes in TA and Dutch telco KPN as part of its geographic diversification strategy. It made an unsuccessful takeover bid for KPN last year, effectively blocked by the foundation charged with protecting the Amsterdam-based telco and its stakeholders.
In May, TA’s management and supervisory boards refrained from explicitly recommending AMX’s offer, saying its own valuation of the company depends largely on future market developments. At the time, the management board said it “acknowledges the offer and the business and political goals and intentions of the bidder, supports them and is neutral about the offer.”
AMX CFO Carlos Garcia Moreno has said the company intends to keep 24% of TA’s shares listed on the Vienna Stock Exchange. The Mexican company has also said it will take part in a €1bn capital increase at the Austrian telco to better position it for growth in Central and Eastern Europe.
