América Móvil To Sell Assets To Cut Mexican Market Share Under 50%

(RTTNews) - Mexican billionaire Carlos Slim's América Móvil, S.A.B. de C.V. (AMX, AMOV) said Tuesday that its Board of Directors has resolved to authorize measures to reduce its national market share in the Mexican telecommunications market under 50% in order to cease being a "preponderant economic agent", under the terms of the Constitution of the United Mexican States and its implementing legislation.

The company said its board has decided to sell certain assets to a new and solid independent carrier, with experience in the telecommunications sector, with sound economic and technical resources, being a real option to participate in the capital intensive sector, to overcome the obstacle of the insufficient investment made by its Mexican competitors.

The decision related to the sale of assets is conditioned upon Teléfonos de México, S.A.B. de C.V. and Radiomóvil Dipsa, S.A. de C.V. ceasing to be "preponderant economic agents" and subject to asymmetric regulations, and being able to access the provision of convergent services. Also, the assets must be sold at market conditions at their commercial value.

In addition, all cellular cites, including towers and related passive infrastructure, will be separated from Telcel for their corresponding operation and commercialization to all interested parties.

The implementation of the approved measures is subject to certain corporate, regulatory and governmental authorizations, as well as the approval, as the case may be, of the board of directors and/or shareholders' meetings of América Móvil and/or subsidiaries.