America Movil SAB de CV (ADR) (NYSE:AMX)’s think tank and billionaire Carlos Slim who associates with his business endeavour are planning to propose spinoff the company’s assets to its shareholders, pertaining to the holistic mobile phone based businesses in Mexico. There are a lot of thoughts being discussed by the top notch officials pertaining to the proposal to spin off assets; it’s the shareholders who would have the ball in their court to take a call, once the proposal is made.
Spinoff Talks In Advanced Stage
In February 2015, the top executives and other sources, who had some knowhow on the matter which the company hopes to propose, said that the company is pondering and anticipating at spinoff in Mexico of cell-phone towers to a newfound company. The sources claim that the talks of spinoff were at an advanced stage. This would see its holistic implementation by May or early June 2015, once the grounds are cleared by all and sundry, including the shareholders.
Why Is The Need For Spinoff?
Mexican billionaire Slim has mentioned and conceived the idea last year to sell off some of its assets in order to duly get rid of the burdens and pangs of regulations that were deftly designed in order to reduce or curb the company’s dominance of myriad data markets and local phone industry.
The need for this spinoff is in order to decrease the dominance in the industry; otherwise the Mexican telecom regulator would impose severe punishments to the company by inception of tougher rules and regulations to withstand.
In 2014, Mexican Congress announced that they are pondering a series of reforms and want to make the markets open to a plenitude of opportunities; invariably, on the premise of the Mexican telecom industry, this would start only by curbing the levels of dominance that AMX exudes, dropping its share to below 50 per cent.