Pan Latin American mobile operator America Movil plans to use the US$5bn it raised recently through bonds to fund the takeover of Telmex Internacional, as well as to refinance debt, it has been reported.
America Movil raised over US$5bn recently in…
Pan Latin American mobile operator America Movil plans to use the US$5bn it raised recently through bonds to fund the takeover of Telmex Internacional, as well as to refinance debt, it has been reported.
America Movil raised over US$5bn recently in domestic and international bond sales, and reports now cite the telco’s CFO Carlos Garcia Moreno as saying that part of the raised funds are to be used to fund the acquisition of Telmex, with another part being for liability management, as the operator does not want to be in a position where it would have so much short-term debt, as it has significant debt maturing over the coming three years.
America Movil is set to close the acquisition of fellow Mexican based operator Telmex in Q2 2010, after which it has plans to delist Carso Global Telecom and Telmex from the stock market.
Separately, according to a regulatory filing, America Movil is set to complete the takeover of Telmex and Carso as soon as May.
The telco is set to launch tenders for the two operators between April 7 and May 5, offering 2.0474 for each of its own shares for every share held in Carso, which would give America Movil a 59.4% stake in Carso’s fixed line operator Telefonos de Mexico SAB and a 60.7% stake in Telmex.