America Movil (AM), acting through its wholly owned subsidiary Carso Telecom, has entered into a shareholders’ agreement with Austrian state holding company Osterreichische Industrieholding AG (OIAG), with respect to their participations in Telekom Austria Group. As part of the transaction, OIAG and AM have agreed – subject to the closing of the public offer (as defined below) and the approval by Telekom Austria’s shareholders meeting – to vote in favour of a EUR1 billion (USD1.4 billion) capital increase in Telekom Austria.
As a result of the shareholders’ agreement, AM (through Carso Telecom) will launch a public takeover offer pursuant to the Austrian Takeover Act, for all outstanding Telekom Austria shares not held by AM, Carso Telecom or OIAG. The offer price will be EUR7.15 per share. The shareholders’ agreement and the public offer are subject to certain regulatory approvals. Once such conditions are satisfied, the shareholders’ agreement will become effective and AM will assume ‘operational responsibilities’ at Telekom Austria.