Release of 24.04.2014
Today the Telekom Austria Group (VSE: TKA, OTC US: TKAGY) announces that it has been informed of the following facts:
Mexico City, Mexico, April 23, 2014. América Móvil, S.A.B. de C.V. ("AMX") (BMV: AMX; NYSE: AMX; NASDAQ: AMOV; LATIBEX: XAMXL), announced today that it has entered, through its wholly owned subsidiary Carso Telecom B.V. ("Carso Telecom"), into a shareholders' agreement (the "Shareholders' Agreement") with Österreichische Industrieholding AG ("ÖIAG"), with respect to their participations in Telekom Austria AG ("Telekom Austria").
As part of the transaction, ÖIAG and AMX 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 favor and support a capital increase in Telekom Austria of EUR 1,000 million. The capital increase will strengthen Telekom Austria's capital structure and financial position and will allow Telekom Austria to continue to invest in state-of-the-artinfrastructure, research and development, innovation of products and services, amongst others, and to position Telekom Austria to benefit from investment opportunities arising in the countries in which it currently operates and in emerging markets in Central and Eastern Europe.
This Shareholders' Agreement and the Public Offer (as defined below) are subject to certain regulatory approvals. Once such conditions are satisfied, the Shareholders' Agreement will become effective and AMX will obtain operational responsibilities in Telekom Austria. Telekom Austria currently operates in Austria, Belarus, Bulgaria, Croatia, Serbia, Macedonia, Liechtenstein and Slovenia. As of December 31, 2013, it had approximately 2.6 million fixed line subscribers, 20.1 million wireless subscribers and revenues of EUR 4,184 million.
AMX CEO Daniel Hajj said: "We are very happy to partner with ÖIAG, a key shareholder of Telekom Austria that has developed an extraordinary company with extraordinary people. The negotiations with ÖIAG, although intense, were constructive and professional. The main goal for both parties was the further development and future of Telekom Austria. This agreement provides the basis for future growth, continued innovation, and solid investment in Telekom Austria. It will strengthen the capital structure of Telekom Austria; maintain a state of the art infrastructure in a very dynamic and competitive sector, and support job development and creation. In this way, Telekom Austria will continue to contribute with services that are strategic for the economic and social development of the country. It will also contribute to better position Telekom Austria as a more relevant player in the European telecommunication markets and to be in a position to benefit from growth opportunities in the region."
As a result of the Shareholders' Agreement, AMX, through Carso Telecom, will launch a public takeover offer pursuant to the Austrian Takeover Act, for all outstanding Telekom Austria shares not held by AMX, Carso Telecom, ÖIAG or Telekom Austria (the "Public Offer"). The offer price of the Public Offer will be EUR 7.15 (seven euros and fifteen cents), per Telekom Austria share. The publication of the offer document will take place in the coming weeks and in accordance with the Austrian legal framework.