Mexican telecoms giant America Movil is to present its tower spin-off plan at an extraordinary shareholders meeting to be held on 17 April.
In a letter to shareholders today seen by TelecomFinance, the company explained that the new business – to be…
Mexican telecoms giant America Movil is to present its tower spin-off plan at an extraordinary shareholders meeting to be held on 17 April.
In a letter to shareholders today seen by TelecomFinance, the company explained that the new business – to be called Telesites – will comprise the 10,800 towers belonging to America Movil’s mobile business, Telcel. An independent towerco, it will lease space to Telcel as well as new and existing rival cellcos, which will have the right to access 90% of its towers.
The company announced the spin-off decision last July, following the Mexican government’s decision to impose new competition rules aimed at curbing America Movil’s dominance.
It added that it expected the family of Carlos Slim, as well as the company’s trustees and the family-owned Carso property company would all vote in favour of the motion.
America Movil will transfer Ps21bn (US$1.4bn) to the new company, according to the Wall Street Journal. CEO Daniel Hajj reportedly said that the spin-off is likely to take place in either May or June.
America Movil shareholders will receive one Telesites share for each of their existing shares, the company wrote.
In mobile, market leader America Movil competes with Telefonica’s local business, as well as Iusacell, recently acquired by AT&T, which has also agreed to buy Nextel.
