América Móvil to take option on CTI

25 Jul 2003

América Móvil, the Mexican mobile holding company which has stakes in Latin American operators in Mexico, Brazil, Colombia, Guatemala, Ecuador and Argentina, has acquired the option to buy 49% of Argentina’s fourth largest cellco CTI. Under the terms of the deal proposed to the Mexican stock exchange yesterday, local investment firm Coinmov will buy out current CTI shareholders, including US-based Verizon [NYSE: AMX]. Then América Móvil can exercise its option to buy 60% of the voting rights and 49% of the equity in Coinmov, giving it an equal voting and equity interest in CTI. Once the transaction is completed América Móvil plans to run CTI which has around 1.2 million subscribers and a market share of 17%, through its broadband unit Techtel.