AT&T Inc has announced that it has decided to withdraw its planned initial public offering (IPO) of shares in Vrio Corp – the holding company for its Latin American digital entertainment services units, DirecTV Latin America and SKY Brasil Servicos (Sky Brazil). In a brief investor statement, the company said that it made this decision ‘based on current market conditions’. The announcement comes less than two weeks after the US telecoms giant launched the IPO process.
As previously reported by TeleGeography’s CommsUpdate, on 6 April AT&T launched the IPO of 29.68 million shares of Class A common stock held by Vrio Corp. The IPO price was expected to be between USD19.00 and USD22.00 per share, and Vrio applied to have its shares approved for listing on the New York Stock Exchange (NYSE) under the ticker symbol ‘VRIO’.
DirecTV Latin America – a wholly-owned part of DirecTV Group – comprises operations in Argentina, Colombia, Ecuador, Peru, Uruguay, Venezuela, Puerto Rico and the Caribbean (including Trinidad & Tobago, Barbados, Aruba, Curacao and 20 other markets via authorised agents/dealers). Sky Brazil is 93.0%-owned, while the group holds a 41.3% equity method investment in Innova (Sky Mexico). Sky Dominicana (Dominican Republic) and Sky operations in Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) all fall under the control of Sky Mexico.