America Movil Pays $4.6 Billion to Boost Control of Telmex
Carlos Slim’s America Movil SAB will pay 62.1 billion pesos ($4.6 billion) to increase its stake in Telefonos de Mexico SAB to 93 percent as the billionaire seeks to move all of his telecommunications assets into one company.
Stockholders of America Movil, which already controlled 60 percent of Telmex, tendered 5.92 billion shares of the unit for 10.50 pesos each, according to a filing today to the Mexico stock exchange. Delisting a stock, as America Movil plans with Telmex, requires the support of holders of at least 95 percent of the shares.
America Movil, the largest mobile-phone carrier in the Americas, plans to combine its operations with Mexico’s largest landline phone carrier since buying a majority stake last year. The Mexico City-based company has said the acquisition will cut administrative costs, such as accounting, and may lead to joint stores and customer-service operations.
The company acquired its 60 percent stake in Telmex last year in a $23 billion transaction that also gave it full ownership of Slim’s fixed-line networks in South America. America Movil spent an additional $2.7 billion between October and January to buy preferred shares in Brazilian cable carrier Net Servicos de Comunicacao SA. (NETC4)
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