América Móvil said it has entered into an agreement with Marathon Zwei Beteiligungs GmbH, a wholly owned subsidiary of RPR Privatstiftung, to acquire approximately 21% of the outstanding shares of Telekom Austria, which counts 20.3 million wireless subscribers and 2.6 million fixed lines.
If approved, the deal will be América Móvil’s third move within little more than a month to boost its presence outside Latin America. It has offered about $10 (8 Euros) per share to increase its stake in Dutch operator KPN, and has entered into an agreement to acquire U.S.-based mobile virtual network operator Simple Mobile.
Under to the terms of the agreement with Telekom Austria, América Móvil has acquired approximately 5% of the outstanding shares and will acquire an additional 16% stake upon receipt of certain governmental approvals and other authorizations customary in this type of transaction. The acquisition of this additional stake is expected to close by the end of the year.
Following its immediate 5% stake increase, América Móvil total interest in Telekom Austria is 6.7% and, upon consummation of the acquisition of the additional 16% stake, the company’s total interest will be approximately 23%.
In statement, América Móvil noted it is part of the company’s geographic diversification strategy and provides an attractive presence in Central and Eastern Europe.