America Movil wins shareholder approval for towers spin-off
Reuters
Published Sep 29, 2021 07:49PM ET
Updated Sep 29, 2021 08:45PM ET
By Cassandra Garrison
MEXICO CITY (Reuters) -Shareholders approved a plan of America Movil (NYSE:AMX), 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 https://www.reuters.com/article/mexico-americamovil-liberty/america-movil-liberty-latin-america-plan-joint-venture-markets-cheer-idUSKBN2GP1LH 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.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.