America Movil approves tower spin-off
20 April 2015 |
America Movil has approved the spinoff of its mobile towers into a separate company in Mexico.
As many as 11,000 mobile towers will be spun off into a listed company named Telesites, which will lease space to America Movil as well as other operators.
America Movil said that 98.2% of shareholders voted in favour of the plan. The company said assets to be spun off comprise mostly of "passive infrastructure" used by its mobile operations in Mexico.
Shareholders of America Movil will receive the same number of Telesites shares as they own in America Movil.
Telesites will be dedicated to "building, installing, maintaining, operating, and marketing, directly and/or through subsidiaries, different types of towers and other support structures,” said Alejandro Cantu, director of legal affairs and secretary of America Movil's board, in a letter to shareholders earlier this month.
The move is in response to the Mexican government's measures to reduce America Movil's national market share under 50%.
Last year, America Movil, which controls about 80% of landlines and 70% of mobile-phones in Mexico, was declared the dominant operator by the country’s Federal Federal Telecommunications Institute (IFT).