Argentine telecoms operators Cablevision and Telecom Argentina are set to merge, it has been announced. On 30 June 2017 Grupo Clarin and Cablevision Holding informed the Argentine Securities Commission and the Buenos Aires Stock Exchange that the board of directors of Cablevision, a subsidiary of Cablevision Holding – the spun off company that resulted from Grupo Clarin’s reorganisation process – has approved a ‘pre-merger commitment’, whereby Telecom Argentina will absorb Cablevision pursuant to a merger under the terms of Articles 82 and 83 of the Argentine General Companies Law. The merger is subject to corporate and regulatory approvals.
As per the pre-merger commitment, an exchange ratio of 9,871 new common shares of Telecom Argentina – with a nominal value of ARS1 (USD0.06) per share – will be issued in exchange for each common share of Cablevision, with a nominal value of ARS10,000 per share. Further, pursuant to the merger, Telecom Argentina shall issue 1.185 billion new common, book entry shares with a nominal value of ARS1 and one vote per share, to be delivered to the shareholders of Cablevision as either Class A shares of Telecom Argentina or Class D shares, as applicable.
TeleGeography notes that investment firm Grupo Fintech holds the 40% stake in Cablevision not currently held by Cablevision Holding. Fintech, meanwhile, also owns 100% of Sofora Telecomunicaciones, which itself holds a 55.6% economic interest in Telecom Argentina.