Iusacell/Unefon Merger to Bring in Revs of US$995mn in 2007
The merger of Mexican mobile companies Iusacell and Unefon is expected to result in sales of 11bn pesos (US$995mn) in 2007 and end the year with some 3.4mn subscribers, parent Grupo Iusacell said in a statement.
The process is due to be ratified by the companies' shareholders at their next meeting, though a date was not specified. The companies' boards approved the merger in September 2006.
According to the statement, private investors will hold around 23% of company equity. The new company combines the equity value of Grupo Iusacell at US$1bn and Unefon Holdings at US$333mn. In order to allow for Unefon shareholders to be part of the new company, Iusacell will issue 34mn new shares, in addition to the current 93mn in circulation.
The company will account for 7% of the Mexican mobile market and expected Ebitda of 2bn pesos. While the companies did not say how much they expect to save through synergies, they will have national coverage, greater economies of scale and eliminate redundant expenses, the statement said.
In a separate announcement, French equipment provider Alcatel-Lucent said it has signed a one-year contract to expand and upgrade Iusacell's existing network to support CDMA20001x EV-DO technology."
Posted to the site on 30th March 2007