The IPO of America Movil’s tower spin-off Telesites is likely to be delayed until late summer, the company told New Street Research analysts.The spin-off, which was officially approved by AMX shareholders at an EGM on 17 April, was initially expected…
The IPO of America Movil’s tower spin-off Telesites is likely to be delayed until late summer, the company told New Street Research analysts.
The spin-off, which was officially approved by AMX shareholders at an EGM on 17 April, was initially expected to list its shares on the Mexican Bourse in early June.
“We now expect the new shares to be registered with the Mexican SEC in July, at which time the financials will become available. Some time after this (apparently with enough time for the market to digest the disclosure) the shares will be listed,” New Street Research analyst Soomit Datta wrote in a note.
The towerco, which consists of 10,800 masts, will be headed by Gerardo Kuri, current CEO of listed real estate company Inmeubles Carso. AMX owner Carlos Slim recently bought out the remaining 19.5% stake in that company it did not already own.
In an interview with TelecomFinance last month, the company said: “We are spinning off Telesites and it will become an independent company. America Movil will not retain any stake in the company and it will not participate on the board or the management of Telesites.”
Datta pointed out that although AMX had been keen to express that the new company would be run independently, management is certainly being kept in the family.
America Movil shareholders will receive one Telesites share for each of their existing shares.
AMX will shift Ps20.6bn (US$1.3bn) of debt into Telesites, initially in the form of a loan from AMX. It will also move Ps2bn(US$130m) of cash into the tower company.
New tenants will be offered the same rental price as AMX’s wireless unit Telcel.
“We continue to have a positive view on the potential for Telesites,” Datta said. “In addition to a structural lack of sites, we believe AT&T will help drive growth. We also think there could be site demand from the 700 MHz wholesale network in Mexico and Telefonica.”
