América Móvil to complete Telesites spin-off this week
América Móvil will complete this week the spin-off of its Mexican infrastructure rental company Telesites and shares will be distributed in November, CEO Daniel Hajj said during an investors' conference call on Tuesday.
Telesites was expected to start operations in June but postponed its official launch as América Móvil awaited final approval from telecoms watchdog IFT. "We now have all the legal authorization," Hajj said.
Telesites was created by América Móvil to spin off part of its assets in the hopes it would help the company shed its preponderant status and the asymmetrical measures that go along with it. The measures were imposed by Mexican authorities as part of the telecoms reform approve last year.
The spin-off firm will become Mexico's largest tower rental company, controlling 10,800 towers and 43.2% of the market. American Tower, which has been the largest tower rental company until now, will be second with a 34.2% slice.
In its third quarter results statement, América Móvil said that the spin-off would help reduce net debt by 21bn pesos (US$1.3bn). Total debt at end-Q3 was US$42.2bn.
Asked whether América Móvil would consider extending the Telesites company to other parts of Latin America, Hajj said that there were no plans over the next year but that it could be a possibility in the future.
América Móvil posted 2.88bn pesos in losses for Q315, the first time since 2001 the company has been in the red.
Revenue was up 1.2% to 224bn pesos, but sales growth was eclipsed by weakness in the Brazilian and Mexican currencies.
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