Carlos Slim-backed America Movil (AM) intends to spin off a Mexico City-based holding company known as Sercotel, Reuters reports, citing an announcement in Mexico City’s daily gazette. Shareholders in Sercotel, which is a wholly owned subsidiary of AM, agreed to the spin-off on 7 January. Sercotel’s total assets are valued at MXN30.247 billion (USD2.083 billion), and the move has been described by a company spokesman as a ‘simple reorganisation’ to make AM’s corporate structure more efficient. Comprehensive details regarding Sercotel’s assets remain unclear, but the spin-off is not believed to be related to the Mexican company’s long-stated plans to sell of parts of its domestic fixed and mobile businesses.
As previously reported by TeleGeography’s CommsUpdate, AM owner Carlos Slim is ready to sell off parts of his Mexican telecoms business in an effort to cut his company’s market share across the sector to below the 50% mark, thus avoiding regulations that apply only to dominant players, and cease being a ‘preponderant economic agent’. In September 2014 it was reported that AM had contacted four potential suitors – AT&T, Softbank Corp of Japan, Bell Canada and China Mobile – with a view to selling Telmex and Telcel in a deal worth up to USD20 billion. However, front-runner AT&T went on to strike a USD2.5 billion deal with another Mexican rival, Iusacell, effectively leaving the race for the AM assets wide open.