America Movil cemented its control of Telekom Austria while moving ahead with its plans to sell assets in Mexico.
The operator announced that shareholders representing 23.5 per cent of the Austrian company’s share capital had accepted its public tender offer.
America Movil already held a stake of over 27 per cent, meaning it now has a majority of 51 per cent in Telekom Austria.
This latest stake building in the Austrian company cost America Movil €744 million ($1 billion).
The Mexican company established a shareholder pact with Austria’s state holding company OIAG, which has a 28 per cent in Telecom Austria, in April. Under local law, the pact obliged a bid for the outstanding shares in the company.
Meanwhile, America Movil is preparing to sell assets in its home market, under pressure from the country’s government which is intent on reducing the operator’s market power.
Both AT&T and Telefonica have been earmarked as possible buyers in Mexico, according to speculation.
European investment is a means to rebalance the Mexican company’s investment towards a market which America Movil has said is undervalued. Its initial target was KPN in the Netherlands but that bid failed.
In a filing, the company said holders of 104 million shares had voted in favour of accepting its €7.15 per share offer.