America Movil (AMX) has prepared a draft shareholder syndicate agreement that would allow it to take control of Telekom Austria (TA).
The draft agreement between AMX and TA’s largest investor, state holding OeIAG, was revealed by Austrian magazine…
America Movil (AMX) has prepared a draft shareholder syndicate agreement that would allow it to take control of Telekom Austria (TA).
The draft agreement between AMX and TA’s largest investor, state holding OeIAG, was revealed by Austrian magazine News.
The document would allow OeIAG to keep a blocking minority of 25.01% in TA, and the holding would agree to co-operate with AMX going forward.
Furthermore, AMX would make an offer for all outstanding TA shares. The current free float of about 45% has a value of €1.48bn, not taking into account any premium AMX would have to pay.
Carlos Slim’s AMX would also invest a further €750m in Telekom Austria by participating in a capital increase.
According to News, “leading members” of the Austrian government have already been informed of the draft agreement.
AMX also offers a number of sweeteners, such as promises to keep TA listed in Austria, to invest in infrastructure and to improve the telco’s position in the CEE region.
The shareholder pact would be agreed for a period of 10 years, with an optional five-year extension.
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.
