AT&T Sells Remaining Stake in America Movil for $5.6 Billion
Published on: 29th Jun 2014
USA based AT&T is selling the remainder of its stake in Latin America's America Movil for USD5.6 billion, ending a 20 year partnership between the two companies.
AT&T is selling its 8.3 percent stake to Billionaire Carlos Slim, via a holding company, Inmobiliaria Carso. The transaction significantly increases Slim's control over America Movil as the 8.3 percent equity stake comes with 24 percent of the voting rights.
Slim and his six children already controled about half of America Movil through personal holdings, a family trust and Inmobiliaria Carso.
AT&T will receive $4.57 billion at the close of the sale and another $1 billion within 60 days of the closing of the transaction.
The US firm is being forced to sell the stake to secure regulatory approval for its takeover of DirecTV in the USA, which also has operations in Latin America which would compete with America Movil.
In a statement, América Móvil said it "recognizes the great value that the partnership with AT&T had for both companies for more than 20 years."