America Movil plans to spin off mobile towers
02 April 2015 |
America Movil will submit a plan to shareholders this month to spin off its mobile towers into a separate company as part of a restructuring plan.
The assets - to be spun off into a listed company named Telesites - include around 11,000 towers, of which capacity on the towers will be leased to other operators.
Under the plan, the company’s shareholders will receive the same number of Telesites shares as they own in America Movil.
The deal, which aims to transfer approximately 21 billion pesos ($1.39 billion) of America Movil’s debt to Telesites, must be approved at a shareholder meeting on April 17. The spin-off is expected to occur between May and June, according to Daniel Hajj, America Movil’s CEO.
The proposal is part of America Movil’s move to comply with strict anti-trust regulation in Mexico. The company said it is considering all options to reduce its market share and plans to sell other assets to lower its market share to less than 50%.
America Movil controls approximately 70% of the country’s mobile market and over 60% of landlines in Mexico.
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