Carlos Slim’s America Movil (AMX) has confirmed it is in contact with Austrian state holding company OeIAG about forming a pact to pool their interests in Telekom Austria (TA), paving the way for a friendly takeover.
AMX said in a statement that…
Carlos Slim’s America Movil (AMX) has confirmed it is in contact with Austrian state holding company OeIAG about forming a pact to pool their interests in Telekom Austria (TA), paving the way for a friendly takeover.
AMX said in a statement that formal discussions could be started about a “potential shareholders’ syndicate agreement”, stressing that contacts are at a “very early stage”.
“It is unclear whether discussions will enter a critical negotiation phase or result in any shareholders’ syndicate agreement,” the Mexico-based telco said.
AMX noted that it has held talks with different stakeholders in the Austrian incumbent, including OeIAG, “to explore mutual cooperation”.
OIAG is currently TA’s largest shareholder with a 28.4% stake, while AMX owns 26.8%. Under Austrian law, shareholders acquiring a 30% stake in a company are required to launch a full takeover bid.
Austrian economy minister Reinhold Mitterlehner said the government is “definitely” interested in the prospect of forming a shareholder pact with AMX, Reuters reported.
Last week, it emerged that AMX had prepared a draft shareholder syndicate agreement that would allow it to take control of the Vienna-based telco.
The document, revealed by Austrian magazine News, would allow OeIAG to keep a blocking minority of 25.01% in exchange for agreeing to co-operate with AMX going forward.
AMX would then make an offer for all outstanding TA shares. The current free float of about 45% has a value of €1.48bn (US$2.04bn), not taking into account any premium AMX would have to pay.
The Mexican group would also invest an additional €750m (US$1.03bn) in the Austrian telco by participating in a capital increase.
The draft agreement includes number of sweeteners, such as promises to keep TA listed in Austria, invest in infrastructure and improve the operator’s position in the CEE region.
The shareholder pact would last for 10 years, with an optional five-year extension.
According to News, “leading members” of the Austrian government have already been informed of the draft agreement.
Rudolf Kemler, head of OeIAG, recently indicated that he would not oppose a takeover of TA by AMX, as long as the Austrian state keeps a blocking minority.
Meanwhile, the Financial Times cited AMX CEO Daniel Hajj as saying it is not yet possible to say definitely whether the company will boost its stake in TA.
“The thing we are discussing [with OeIAG] is how do we develop the company in the long term, but we haven’t had anything yet. [Raising its stake] could be a possibility, it could not be a possibility,” he said at the Mobile World Congress in Barcelona.
Hajj reportedly noted that AMX wants to boost TA’s presence in Eastern Europe, drawing comparisons between some markets in the region and those in Latin America.
The CEO also noted that, in the wake of AMX’s failed takeover bid attempt for Dutch telco KPN, the company would make only friendly offers for companies going forward.
TA declined to comment on the potential shareholders’ pact.
