Latin American telecoms giant America Movil (AM) has confirmed that it will begin the process of delisting Mexican fixed line incumbent Telefonos de Mexico (Telmex) from the local stock exchange. According to Reuters, AM will make an offer for the 2.79% of the company’s shares that it does not currently own at a price of MXN10.2250 (USD0.78) per share.
As noted in TeleGeography’s GlobalComms Database, in August 2011 AM chairman and controlling shareholder Carlos Slim confirmed he was looking to complete the restructuring of his telecoms empire amid reports that AM had offered to buy the 40.4% stake in Telmex that it did not already own. With AM confirming it would pay MXN10.5 per share for the outstanding Telmex shares, US-based AT&T, which held an 8.5% stake in Telmex at the time of the announcement, indicated it would accept AM’s offer for its shares, following which AM launched a formal bid for the remainder of the Telmex stake in October 2011, confirming the MXN10.5 per share price it had initially announced in August. Subsequently, in November 2011 AM revealed that, on the back of preliminary results of a shareholder buyout offer, its stake in Telmex had risen to nearly 93%, compared to the almost 60% it held prior to the offer. Following the tender offer AM purchased additional equity in the telco, increasing its direct and indirect ownership of Telmex to 97.2%.