Telmex Internacional stock begins trading

11 Jun 2008

Mexican telco Telmex has officially spun off its international operations into a new company, Telmex Internacional, with the launching of the stock on the New York and Mexican bourses. Telmex Internacional – which operates telecoms operations in Argentina, Brazil, Chile, Colombia, Ecuador and Peru – was spun off from Telmex in December. With the spin-off, some USD1.5 billion of Telmex’s USD10 billion total debt goes to Telmex Internacional with the remainder staying in Mexico. Oscar Von Hauske, CEO of Telmex Internacional, said during a conference call that in the short term the drivers of Telmex Internacional would be its operations in Brazil and Colombia. In Brazil, Telmex is the only operator with national fixed line coverage with long-distance and data services through its Embratel Participacoes unit. The company also has a strong offering in the TV segment through its stake in the country’s largest pay-TV operator Net Servicos. In Colombia, Telmex has been consolidating its triple-play offering through acquisitions of local cable players.

Mexico, Telefonos de Mexico (Telmex)