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América Móvil readies Telekom Austria takeover

Apr 24, 2014

Mexican telecoms firm prepares public offer after reaching deal with Austria’s OIAG

América Móvil (AMX) is to offer €1.4bn ($1.9bn) for 44.76% of Telekom Austria, it said on Wednesday.

In a deal with the Austrian government’s investment vehicle Osterreichische Industrieholding (OIAG), the largest Telekom Austria shareholder, América Móvil will launch a public takeover bid for the portion of the company’s shares that are in free float.

The offer, set to come at €7.15 per share, will be launched in the "coming weeks", América Móvil said.

The two shareholders also agreed to a €1bn capital increase for Telekom Austria, to take place after the takeover offer closes.

The transaction comes after months of discussions, and follows the Mexican’s failed efforts last year to spend €7.2bn buying 70% of Dutch telecom Royal KPN.

América Móvil, which was declared a dominant player in Mexico´s telecoms industry last month, bulked up its acquisition finances last year as the KPN discussions developed. It sold a triple-tranche hybrid instrument in Europe totaling $2.8bn in September, a month after securing a €7.2bn bridge loan from a club of banks.

Telekom Austria’s shares slumped from €7 per share on the news, to close at just under €6.7 each. The deal is subject to regulatory approval. LF

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