America Movil wins shareholder approval for towers spin-off By Reuters

America Movil wins shareholder approval for towers spin-off
© Reuters. FILE PHOTO: The logo of America Movil is pictured on the wall of a reception area in the company’s corporate offices in Mexico City, Mexico, May 18, 2017. REUTERS/Edgard Garrido/File Photo

By Cassandra Garrison

MEXICO CITY (Reuters) -Shareholders approved a plan of America Movil (NYSE:), controlled by the family of billionaire Carlos Slim, to spin off its towers business in Latin America, Mexico’s biggest telecoms company said on Wednesday.

In an extraordinary general meeting, they overwhelmingly approved the spin-off, which will create a new company called Sitio Latinoamerica, America Movil said in a statement to the Mexican stock exchange.

Upon completion, Sitio Latinoamerica will own 36,000 telecommunications towers in Argentina, Brazil, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, Dominican Republic and Uruguay, the company said.

America Movil will contribute to Sitio Latinoamerica a portion of its share capital consisting mainly of shares it owns in subsidiary companies that own towers and other associated infrastructure.

The company previously said it expected to complete the reorganization this year.

Earlier on Wednesday, America Movil and Liberty Latin America announced they would combine Chilean operations to form a joint venture in a move aimed at expanding fixed fiber operations and speeding up the launch of 5G services.

The transaction combines the complementary operations of Claro Chile, the Chilean subsidiary of America Movil, and VTR, Liberty Latin America’s provider of high-speed products like broadband and Pay TV.

The joint venture, which was expected to generate estimated run-rate synergies of more than $180 million, excludes all telecommunication towers owned indirectly by America Movil in Chile.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Leave a Reply

Your email address will not be published.