América Móvil to Acquire a Controlling Interest in ClaroVTR
24 June 2024 - 11:00PM
Business Wire
América Móvil S.A.B. de C.V. (“América Móvil” or “AMX”) (BMV: AMX, NYSE: AMX and AMOV) and
Liberty Latin America Ltd. (“Liberty
Latin America” or “LLA”)
(NASDAQ: LILA and LILAK, OTC Link: LILAB) announce that,
subject to obtaining the required approval from the National
Economic Prosecutor’s Office of the Republic of Chile (Fiscalía
Nacional Económica), América Móvil will be consolidating ClaroVTR
into its ongoing operations. As previously disclosed, AMX has been
providing funding to ClaroVTR through convertible notes to support
the execution of its business plan and for the refinancing of
certain bank debt existing at the formation of the JV and Liberty
Latin America had the right to catch-up its respective portion of
such funding commitments by the middle of this year for ClaroVTR to
continue as a 50:50 joint venture.
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On June 23, 2024, Liberty Latin America informed AMX it would
not be exercising such right. As a result, AMX will convert its
outstanding notes held in ClaroVTR into equity resulting (subject
to adjustments at closing) in a controlling interest of
approximately 91%. LLA will continue to own approximately 9% of the
equity of ClaroVTR (subject to final adjustments at closing). The
shareholders agreement to be effective upon the conversion of the
notes at closing will reflect a governance according to such equity
interests. Closing of the conversion is expected during 3Q2024.
Commenting on this development, Daniel Hajj, CEO of América
Móvil, said: “We are excited about the prospects of ClaroVTR. Our
strong partnership with Liberty Latin America helped establish a
converged connectivity provider that serves customers with
world-class products and services. We look forward to the prospects
of this business.”
Balan Nair, CEO of Liberty Latin America, remarked: “We are
confident that this is the right next step for ClaroVTR and in the
best interests of Liberty Latin America’s shareholders. América
Móvil is a great partner and ClaroVTR has a strong management team
in place to lead the business. We have been proud investors in
Chile for decades, and while today’s market dynamics are
challenging, the long-term outlook is bright.”
About América Móvil Visit: www.americamovil.com
About Liberty Latin America Visit: www.lla.com
Forward-Looking Statements
This press release contains certain forward-looking statements
that reflect the current views and/or expectations of AMX and its
management with respect to its performance, business and future
events. We use words such as “believe,” “anticipate,” “plan,”
“expect,” “intend,” “target,” “estimate,” “project,” “predict,”
“forecast,” “guideline,” “should” and other similar expressions to
identify forward-looking statements, but they are not the only way
we identify such statements. Such statements are subject to a
number of risks, uncertainties and assumptions. We caution you that
a number of important factors could cause actual results to differ
materially from the plans, objectives, expectations, estimates and
intentions expressed in this press release. AMX is under no
obligation and expressly disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240624882741/en/
For more information, contact: Liberty Latin America Investor
Relations Kunal Patel ir@lla.com
Liberty Latin America Media Relations Kim Larson
llacommunications@lla.com
América Móvil Investor Relations Daniela Lecuona
daniela.lecuona@americamovil.com
América Móvil Media Relations Renato Flores
renato.flores@americamovil.com
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