Business Carlos Slim sells telephone subsidiary in the US for...

Carlos Slim sells telephone subsidiary in the US for $ 6.25 billion

América Móvil announced this Monday the sale of its subsidiary Tracfone Wireless, one of the largest prepaid mobile virtual operators in the United States with 21 million users, to Verizon for $ 6.25 billion, of which half will be paid in cash and the other in Verizon shares, according to the expansion.com portal.

Carlos Slim’s company has explained that after the operation Verizon is obliged to pay the Aztec company up to 500 million dollars, whether Tracfone continues to meet certain operating goals for a maximum period of 24 months and a further $ 150 million on a deferred basis within two years after closing.

The closing of this acquisition is subject to certain conditions such as obtaining the required government authorizations. The parties estimate that the closing of the transaction will occur during 2021.

After the announcement, América Móvil’s shares on the Mexican stock market rose 4.94% to 14.03 pesos, a level not seen since August 24, leading the gains of the day in the local market.

“The transaction itself generates value for shareholders”, analysts from the financial group Banorte said in a note to clients. “The divestiture of TracFone could boost the consolidated profitability of América Móvil.”

América Móvil announced this Monday the sale of its subsidiary Tracfone Wireless, one of the largest prepaid mobile virtual operators in the United States with 21 million users, to Verizon for $ 6.25 billion, of which half will be paid in cash and the other in Verizon shares, according to the expansion.com portal.

Carlos Slim’s company has explained that after the operation Verizon is obliged to pay the Aztec company up to 500 million dollars, whether Tracfone continues to meet certain operating goals for a maximum period of 24 months and a further $ 150 million on a deferred basis within two years after closing.

The closing of this acquisition is subject to certain conditions such as obtaining the required government authorizations. The parties estimate that the closing of the transaction will occur during 2021.

After the announcement, América Móvil’s shares on the Mexican stock market rose 4.94% to 14.03 pesos, a level not seen since August 24, leading the gains of the day in the local market.

“The transaction itself generates value for shareholders”, analysts from the financial group Banorte said in a note to clients. “The divestiture of TracFone could boost the consolidated profitability of América Móvil.”

;

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest news

AirBit Club facing the rise of Bitcoin in 2020

Bitcoin suffered a price drop during 2020, but just a couple of months later it recovered and reached its...

Jeanine Áñez started a sewerage work in Villa Montes, she did not inaugurate it – Bolivia Verifica

This project dates from October 2019 and is part of a process between the Mayor's Office of Villa Montes...

Researchers from the Collaborating Center of the World Health Organization of the UAM are part of the Scientific Advisory Council of the Municipal Strategy...

Laura Alejandra Rico-Uribe and Elvira Lara, postdoctoral researchers at CIBERSAM and the Collaborating Center of the World Health Organization...

Cali Mayor asks that the Super League be broadcast on Open TV – Colombian Soccer – Sports

In view of the bad behavior that a part of the Caleña community has had...

You might also likeRELATED
Recommended to you