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America Movil Offers $1.9 Billion to Buy Out Telekom Austria Shareholders

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Mexico's America Movil has formally launched the expected bid to buy up the rest of the shares in Telekom Austria that are available on the stock market.

Last month, America Movil and the Austrian government's own holding company ÖIAG agreed to merge their shareholdings in Telekom Austria Group, which triggered a stock market rule that they have to offer to buy out the remaining shareholders.

America Movil already owns 26.4% of the company, while the government owns 28.4% of the telco. The remain 44.6 percent is listed on the stock market.

In a short statement, America Movil confirmed that it is issuing the tender to buy the shares in a deal that it says vales the rest of the company at around USD1.9 billion.

Although America Movil will be the larger of the two remaining shareholders in the group, the government's investment arm will still retain the right to appoint the CEO and Chairman of the Group.

Telekom Austria currently operates in Austria, Belarus, Bulgaria, Croatia, Serbia, Macedonia, Liechtenstein and Slovenia. As of December 31, 2013, it had approximately 2.6 million fixed line subscribers, 20.1 million wireless subscribers and revenues of EUR 4.18 billion.

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Tags: america movil  telekom austria  Austria