The long-awaited spin-off of its Latin America cellular tower business by the giant Mexico-headquartered operator America Movil has finally been completed.
America Movil’s shareholders have approved plans to create a new tower company, Sitios Latinoamerica, which will be listed on the Mexican Stock Exchange. Certain assets, liabilities and capital have reportedly been transferred to the new company. According to Reuters, existing America Movil shareholders will receive one Sitios share for every 20 America Movil shares held.
The new company, controlled by the family of billionaire Carlos Slim, has an inventory of 29,090 towers. Just under 40% of these are in Brazil. The rest are in Argentina, Chile, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, Panama, Paraguay, Peru, Puerto Rico and Uruguay.
In a press release America Movil says: “Sitios Latam is a Mexican company, independent from AMX’s management and capital structure. Its business focuses on the construction, operation and marketing of towers and other structures for the installation of telecommunications equipment.”
The spinoff was approved last September by America Movil's shareholders. At that time we reported specialist website Tower Xchange’s assessment that Sitios Latinoamerica was set to become the world’s 10th largest towerco and the second largest in the region.
In a securities filing, Amercia Movil has apparently said that Sitios Latam will continue to evaluate growth opportunities in the region.
Headquartered in Mexico, America Movil is among the largest network operators in the world. In fact, excluding China and India, it claims to be the largest company in terms of wireless subscribers.
A number of operators have spun off their passive infrastructure assets in recent years, freeing up capital and allowing them to focus on core operations.