MEXICO CITY – Mexican telecommunications giant America Movil said it has called for an extraordinary shareholders’ meeting on April 17, when it will seek approval for a plan to spin off its cellular towers into a separate, listed company.
Shareholders will be asked to approve the spinoff, which is part of a plan for complying with stricter telecommunications regulations, the Carlos Slim-controlled company said in a statement Wednesday.
The new company will be called Telesites and be dedicated to “building, installing, maintaining, operating, and marketing, directly and/or through subsidiaries, different types of towers and other support structures,” the director of legal affairs and secretary of America Movil’s board, Alejandro Cantu, said in a letter to shareholders.
America Movil shareholders, he added, will receive the same number and series of Telesites shares as they held in America Movil at the moment the spinoff is executed.
In March 2014, as part of a telecommunications and broadcast media overhaul, the newly created Federal Telecommunications Institute, or IFT, declared America Movil and its operating subsidiaries Telcel (Mexico’s wireless market leader) and Telmex (the dominant fixed-line player), as well as Grupo Carso and Grupo Financiero Inbursa, to be dominant in the sector and imposed certain specific asymmetrical regulations.
Those regulations included regulation on local-loop unbundling; regulation on the access and use of passive infrastructure, including wireless towers; elimination of mobile roaming charges; and regulation on interconnection, including the imposition of asymmetric rates to be determined by the IFT.
In response, America Movil said in July of that year that its board resolved “to authorize measures to reduce its national market share in the Mexican telecommunications market under 50 percent in order to cease being a ‘preponderant economic agent.’”
To that end, the board “decided upon the sale of certain assets to a new and solid carrier independent from America Movil.”
America Movil said Wednesday it will make available an information statement on the restructuring to shareholders and the investing public prior to the April 17 meeting.