Shareholders in Telecom Argentina have approved the company’s planned merger with Cablevision, Reuters reports, citing a filing with the Argentine Securities Commission. The merger, which was agreed on 30 June this year, still requires regulatory approval, however.
As previously reported by TeleGeography’s CommsUpdate, the two companies agreed 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. 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.
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.