UPDATE 3-America Movil plans to list Mexico tower spin-off business

miércoles 1 de abril de 2015 21:59 GYT

(Adds details on debt, analyst quote, expected Slim family position in Telesites)

MEXICO CITY, April 1 (Reuters) - Mexico's America Movil, the telecoms company controlled by billionaire Carlos Slim, said on Wednesday it would propose spinning off its local cellphone tower business into a separate, listed company known as Telesites.

Last year Slim said he wanted to sell assets to try and shrug off the burden of new regulations designed to curb his dominance of the local phone and data markets.

America Movil said that under the plan, current shareholders would receive the same number and series of Telesites shares as they held in America Movil at the moment that the new, independent company is hived off.

The proposal, which foresees transferring some 21 billion pesos ($1.39 billion) of America Movil debt onto Telesites, must be approved by shareholders at a meeting on April 17. At the end of 2014, America Movil reported total debt of $41.2 billion.

Subject to regulatory approval, Telesites shares would be listed and traded on the Mexican stock exchange without there being a public offering of the stock, America Movil said.

Shares in America Movil closed up 3.58 percent at 16.22 pesos before main details of the plan were announced.

Homero Ruiz, telecoms analyst at Signum Research, said the announcement should allay market uncertainty about the spin-off.

"The (America Movil) share price is likely to be negatively affected, but I don't think it will be that much," he said.   Continuación...