VZ, VOD Sell Iusacell Stakes

Movil@ccess to acquire 100% of Grupo Iusacell for $10M, buying up Verizon's 39.4% stake and Vodafone's 34.5% stake

June 13, 2003

3 Min Read

MEXICO CITY -- Movil@ccess, S.A. de C.V., a Mexican telecommunications service provider, subsidiary of Biper, S.A. de C.V. (BMV: MOVILAB), a company part of Grupo Salinas, announced today that it has agreed to make an offer to acquire 100% of the capital stock of Grupo Iusacell, S.A de C.V. (NYSE: CEL) (BMV: CEL), a provider of wireless communications in Mexico, for US$10 million.

The stock of Grupo Iusacell is traded on the Mexican Stock Exchange and the New York Stock Exchange. Verizon Communications (NYSE: VZ) and Vodafone Americas B.V. currently own 39.4% and 34.5% of Grupo Iusacell, respectively, and the remaining capital stock is held by public investors in Mexico and in the U.S.

Movil@ccess has agreed with Verizon and Vodafone Americas to commence tender offers in Mexico and the U.S. for all of the outstanding Class A and Class V capital stock of Grupo Iusacell (including the American Depositary Shares comprised of Series V shares), and Vodafone and Verizon have agreed to tender their shares into the Mexican offer. In the Mexican offer, Movil@ccess will offer a price equal to Ps 0.05712180 per Series A share and Ps 0.05712180 per Series V share (or the dollar equivalent) and, in the U.S. offer, the dollar equivalent of Ps 5.712180 per ADS. The offers will be commenced once the Mexican tender offer has been approved by the Mexican National Securities and Banking Commission (Comision Nacional Bancaria y de Valores), which is expected by mid-July.

"We envision that continued dynamism in the underserved Mexican wireless telephony market -- an economic sector that is vital for the global competitiveness of Mexico -- together with the ample telecommunications infrastructure of Iusacell and a solid business model going forward will permit us to complete a successful turnaround benefiting Iusacell's stakeholders," stated Ricardo B. Salinas, President of the Board of Directors of Biper. Movil@ccess anticipates commencing a constructive dialogue with all of Iusacell's stakeholders in the near future.

In a separate release:

LONDON -- Vodafone Group Plc ("Vodafone") today announces that Vodafone Americas BV, a wholly owned subsidiary, has agreed to sell its 34.5% stake in Grupo Iusacell, S.A. de C.V. ("Iusacell") to Movil Access. Movil Access is a wholly owned subsidiary of Biper, a publicly quoted paging company in Mexico. Iusacell is the third largest mobile operator in Mexico.

Movil Access will launch tender offers in Mexico and the USA for all the shares of Iusacell, subject to certain approvals. Verizon Communications and Vodafone Americas BV together own approximately 74% of Iusacell's equity and have agreed to tender their shares to Movil Access. Approval to launch the tender offers is expected in mid July and, subject to satisfaction of certain conditions, the offers are expected to close in August.

On 5 June 2003, Vodafone International Inc, a wholly owned subsidiary of Vodafone, agreed, subject to conditions, to sell its indirect 20.76% interest in RPG Cellular Services Ltd, a regional operator in Chennai, India. The transaction is expected to complete in early July.

The value of both transactions represents less than 1% of the net assets of Vodafone.

In a separate release:

NEW YORK -- Verizon Communications announced today that it plans to sell its 39.4 percent equity stake in Grupo Iusacell into the tender offer to be launched by Movil Access, a Mexican company, following approval of the offer by the Mexican securities commission.

This transaction gives Iusacell the best chance to move forward as a new company under the control of an experienced local entrepreneur and wireless telecom investor.

Movil@ccess S.A. de C.V.

Grupo Iusacell S.A. de C.V.

Verizon Communications Inc.

Vodafone Group plc

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like