Mexican billionaire Carlos Slim, who controls Latin American telecoms giant America Movil (AM) will acquire the 8.3% stake currently held in the company by US-based AT&T. With the development having been announced in a regulatory filing, it has been confirmed that AM’s board of directors has authorised Inmobiliaria Carso and its subsidiary Control Empresarial de Capitales, both of which are AM shareholders, to acquire 5,739,341,928 Series ‘AA’ shares representing 23.81% of AM’s voting stock (8.27% of the company’s capital stock) from AT&T. Further, Inmobiliaria Carso and Control Empresarial de Capitales were also said to have informed AM that they will acquire some 72,822,656 series ‘L’ shares from AT&T. Once the transaction has been completed AT&T will cease to be a shareholder in AM, ending a partnership that has lasted for more than 20 years. While no financial details of the deal have been disclosed, press reports have suggested that the deal could be worth as much as USD6 billion.
As previously reported by CommsUpdate, last month AT&T confirmed its intention to divest its minority interest in AM in order to facilitate the regulatory approval process for its acquisition of pay-TV provider DirecTV across Latin America. At that date it was suggested that, while AM’s repurchase programme would allow it to acquire shares held by AT&T when they were put on the open market, it would not do so with a view to ensuring it stuck to its current targets for debt leverage.