America Movil buys Verizon trio

4 Apr 2006

Mexican wireless group America Movil has agreed to buy three Latin American operations from Verizon Communications for a total of USD3.7 billion. Under the terms of the agreement America Movil will acquire Verizon’s 100% interest in Verizon Dominicana for USD2.062 billion and a 52% interest in Telecomunicaciones de Puerto Rico (PRT) for USD939 million. Verizon Dominicana is the largest service provider in the Dominican Republic with over 752,000 wireline subscribers and 1.8 million wireless subscribers at the end of 2005. PRT, meanwhile, is the largest telco in Puerto Rico with over 1.11 million wireline subscribers and 485,000 wireless customers. América Móvil has agreed with Verizon to extend an offer to all other PRT shareholders to purchase their shares at the same price per share paid to Verizon.

In a separate announcement, a joint venture between Teléfonos de México, S.A. de C.V. (Telmex) and América Móvil agreed to purchase Verizon’s equity interest in Compañía Anónima Nacional Teléfonos de Venezuela (CANTV) for USD676.6 million in cash. The joint venture will acquire Verizon’s equity stake in CANTV indirectly through the purchase of a Verizon subsidiary holding company that holds all Verizon’s CANTV ordinary shares and American Depositary, representing approximately 28.51% of the outstanding capital. CANTV is the leading provider of telecommunications services in Venezuela with over 3.1 million wireline subscribers and over 5.1 million wireless subscribers.