The giant telecoms corporation America Movil, having decided on a reorganization earlier this year, is now to propose a spinoff of its towers business to shareholders.
According to Reuters, a filing with Mexico's stock exchange late last week indicated that the spin-off to create a new public company will be proposed to shareholders in an extraordinary meeting on 29 September.
As we reported at the time, in February the company’s board of directors approved a plan to spin off from América Móvil the telecommunications towers and other related passive infrastructure in Latin American countries where it currently operates.
The aim of the asset reorganization plan for its regional towers was, it seems, to create a spin-off entity focused on the development, construction and locations of towers for mobile services.
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.
Its interests include multiple operations across the Caribbean as well as the US and Central and Eastern Europe. However, it has an especially strong presence in Latin America, where it is the leading provider of integrated telecommunications services.
The infrastructure involved in this reorganisation is therefore not a negligible amount. The company is said to own between 35,000 and 37,000 towers in the Latin American region. America Movil previously said it expected to complete the reorganization this year.