Amé rica Mó vil Spinoff Telesites Gains in Market Debut
December 21 2015 - 12:40PM
Dow Jones News
MEXICO CITY—Shares of Telesites SAB, the mobile-towers company
spun off by telecommunications heavyweight Amé rica Mó vil, rose
Monday as the stock began trading on the Mexican stock
exchange.
Telesites shares priced at 13 pesos (76 cents) each in a
premarket auction, and were up 1.5% at 13.19 pesos midmorning. Amé
rica Mó vil shareholders received one Telesites share for every 20
Amé rica Mó vil shares held.
Amé rica Mó vil shares gained 4.9% to 12.65 pesos.
The Intercam brokerage said in a recent note: "We think that
Telesites could be an attractive investment vehicle given its
projections for profitability and growth." Telesites could benefit
from the expansion plans of third-party mobile operators, although
its pricing could be limited by regulations, the company added.
Amé rica Mó vil decided in 2014 to separate its mobile towers
into Telesites as part of the company's response to new
telecommunications laws, under which Amé rica Mó vil was declared
dominant given its more than 50% market share and was hit with
regulations including forced infrastructure sharing and zero
charges to connect incoming calls to its mobile network.
As part of the group of companies controlled by billionaire
Carlos Slim, Telesites is also subject to dominant regulations.
Telesites expects to end this year with around 12,600 towers,
and plans to continue expanding the network while increasing the
average number of users per tower. Its main customer is Amé rica Mó
vil unit Telcel, although it has signed leasing agreements with
Spain's Telefó nica and AT&T Inc.
"Telesites will seek to find better locations for its new
towers, increase the number of customers using each tower, increase
its number of towers and be efficient in its operations in order to
create value," Amé rica Mó vil said in a recent filing. "These
goals will be aligned with those of wireless telecommunications
operators, because they will be able to deploy new technologies,
have continuity in coverage and quickly expand their mobile
network."
Telesites won't have American depositary receipts, so holders of
Amé rica Mó vil ADRs will be able to choose between holding local
Telesites shares or taking cash. That could create some overhang
for the share price since depositary banks could sell shares in the
open market, Credit Suisse said in a recent report.
Write to Anthony Harrup at anthony.harrup@wsj.com
(END) Dow Jones Newswires
December 21, 2015 12:25 ET (17:25 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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