Mexican mobile operator to delist from stock market
Published on: 4th Jan 2010
Note -- this news article is more than a year old.
Mexico City, Jan 1 (EFE). Financially troubled Mexican mobile operator Iusacell said in a statement that the company's plan to delist from the Mexican stock market was approved in a shareholders' meeting.
As part of the delisting process, investors in the company owned by magnate Ricardo Salinas Pliego also backed the purchase of outstanding shares, either by the company itself or "some person or persons belonging to the group of controlling shareholders," the statement added.
A recent study by The Competitive Intelligence Unit, a private firm, found that Iusacell-Unefon was the only wireless operator in Mexico to suffer a drop in subscribers in the third quarter of 2009, noting that the company was adversely affected by greater competition in the third-generation (3G) services market and by its limited variety of phones relative to its competitors.
Mexico's No. 3 wireless operator, whose shares trade on the Mexican stock exchange under the ticker symbol CEL, had 3.56 million subscribers, a 4.4 percent market share and $204 million in revenue in the third quarter.
Mexico's mobile market is dominated by America Movil unit Telcel, which has a 71.7 percent market share, while Spain's Telefonica, which operates in Mexico under the Movistar brand, has a 20.2 percent share.
Many analysts say the costs of a stock market listing are very high in Mexico and that explains why the country has few publicly traded companies compared with other similar-sized economies. EFE