Mexican telecom giant America Movil SAB De C.V. (AMX, AMOV) is preparing to sell assets in Mexico worth up to $17.5 billion and has contacted potential suitors including AT&T Inc. (T) and Japan's Softbank Corp. (SFTBY, SFTBF) on the sale, Bloomberg reported Monday, citing people with knowledge of the matter. America Movil is controlled by billionaire Carlos Slim.
According to the Bloomberg report, America Movil is also trying to sell the Mexican assets to BCE Inc.'s (BCE,BCE.TO) Bell Canada and China Mobile Ltd. (CHL). The assets being sold are located along the east coast of Mexico.
America Movil is trying to bolster its presence abroad, while reducing its assets in Mexico following tough new regulations.
In July, the company said its board of directors has resolved to authorize measures to reduce its national market share in the Mexican telecommunications market under 50 percent in order to cease being a "preponderant economic agent", under the terms of the Constitution of the United Mexican States and its implementing legislation.
The company, which accounts for 70 percent of the wireless market and 80 percent of landlines in Mexico, may be able to get its penalties revoked if it cuts its market share in the country to below 50 percent, Bloomberg reported.
America Movil said in mid-July that it has received shares representing about a 23.47 percent stake in Telekom Austria AG (TKAGY) following a public tender offer.
Upon settlement of the offer, America Movil will directly and indirectly hold 225.09 million shares in Telekom Austria, representing about 50.8 percent of the European carrier's share capital. The acquisition will enable America Movil to bolster its presence in Europe.
America Movil had last year wanted to acquire a majority stake in Dutch telecom group Koninklijke KPN N.V. (KKPNY.PK, KPN) after it took a nearly 30 percent stake in that company earlier. The company has been exploring opportunities to expand its operations to other regions outside the Americas and KPN represented its first such investment.
However, America Movil's planned $9.6 billion takeover bid for KPN was thwarted in October 2013 by an independent foundation linked to KPN, which exercised a call option to take a stake of about 50 percent in that company that virtually blocked America Movil's own takeover bid.
In June 2014, AT&T said it has agreed to sell back its stake in America Movil to Carlos Slim in a deal valued at $5.6 billion. AT&T is fully exiting the America Movil stake after more than two decades of partnership between the two companies.
The move to divest the stake is part of AT&T's plan to facilitate the regulatory approval in Latin America for its proposed $48.5 billion acquisition of satellite-TV company DirecTV (DTV), agreed upon in mid-May.
AMX closed Monday's trading at $26.15, up $0.44 or 1.71 percent on a volume of 10.25 million shares.
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