America Movil SAB (AMX), Latin America's largest wireless
service provider, Friday secured its second large-scale acquisition
in Europe, saying it will buy a 21% stake in Telekom Austria AG
(TKA.VI) giving it a doorway into central and eastern Europe.
The acquisition comes hard on the heels of the company's 2.6
billion euro ($3.28 billion) bid for a 27.7% stake in the Dutch
phone company Royal KPN NV (KPN.AE).
The latest stake in Telekom Austria will give the Mexican
company a 23% holding in total by the end of 2012, making American
Movil the second-largest shareholder after Austrian state holding
company Oesterreichische Industrie Holding AG, which holds
28.42%.
America Movil, which already holds a 1.7% in Telekom Austria,
made a deal with investor Ronny Pecik to buy his 21% stake in the
operator. A 5% stake is being acquired immediately, with the
remaining 16% subject to regulatory approval. Mr. Pecik holds his
shares directly and indirectly via his company RPR
Privatstiftung.
America Movil, owned by billionaire Carlos Slim, has 246 million
mobile subscribers in 18 countries. Its expansion within the
Americas has given it stable profits and cash flow and it is
looking to widen its footprint further.
Austria Telekom is Austria's largest telecommunications company
with operations in Belarus, Bulgaria, Croatia, Slovenia and
Serbia.
Financial details of the latest transaction weren't given, but
at Thursday's closing price of 8.03 euros a share. 21% stake would
be worth about EUR7 million. One analyst estimated America Movil
may have paid closer to 9.5 euros a share.
America Movil said it wants to be a long-term strategic partner
of Telekom Austria.
"It is part of [our] geographic diversification strategy and
provides an attractive presence in Central and Eastern Europe," it
said.
Pecik was elected to Telekom Austria's supervisory board just a
few weeks ago at the end of May and maintained at the time that he
was a long-term shareholder.
Telekom's Chief Executive Hannes Ametsreiter said America
Movil's substantial holding was a positive step for the
company.
"As a strategic and long-term investor, the company with its
know-how and knowledge of the industry will contribute to our
company's economic success," he said.
At 1107 GMT, Telekom Austria's shares were trading 1.9% higher
at 8.19 euros.
Write to Nicole Lundeen at nicole.lundeen@dowjones.com