América Móvil to restructure ownership

15 Dec 2006

Shareholders of Mexico’s América Móvil have approved a merger with one of its majority shareholders, América Telecom (Amtel), according to BNamericas quoting a company statement. Amtel is a holding company set up solely to manage a 40.74% equity stake in América Móvil, one of Latin America’s largest mobile groups by subscribers. Under the agreement América Móvil will trade 4.07 of its shares for each Amtel share. The transaction is expected to be completed by February 2007. The restructuring will increase América Móvil’s directly held debt, but will not have a significant impact on the company’s business, Standard & Poor’s corporate ratings director Manuel Guereña told BNamericas.

Mexico, America Movil (AM)