Multi-billionaire Carlos Slim’s telecom group has launched a new subsidiary, Eurotelesites, on the stock exchange in Austria
The telecom giant of multi-billionaire Carlos Slim, America Móvil, has taken the radio tower subsidiary of its Austrian subsidiary Telekom Austria A1 public. The new company, called Eurotelesites AG and based in Vienna, has had a bumpy start, however. Initially, the stock was listed below its issue price. Since it is a spin-off, there was no procedure for the issue price, as is usual with an IPO. Eurotelesites was spun off at a price of EUR 4.95 per share. This corresponded to a market capitalization of around EUR 822 million. Telekom Austria shareholders received one share in Eurotelesites for four shares. America Móvil holds 56.5 percent of Eurotelesites and will not sell its stake for a period of five years.
America Móvil also holds 56.5 percent of Telekom Austria. The Austrian subsidiary is active from Belarus to Bulgaria to Serbia and Croatia. In its home market of Austria, it is the undisputed market leader ahead of Deutsche Telekom. For the current year, the group expects sales growth of around four percent and an investment volume of almost one billion euros. In 2022, revenues amounted to five billion euros.
According to the US investment bank Jefferies, the spin-off of the radio tower subsidiary Eurotelesites will have only a “marginal impact” on America Móvil. The US analysts estimate that Telekom Austria and Eurotelesites will together account for just over twelve percent of America Móvil’s consolidated sales and around eleven percent of EBITDA in 2023.
Analyst Alex Wright, meanwhile, is speculating about the sale of other listed minority holdings such as KPN and Verizon. The aim would be a higher cash return for America Móvil shareholders and simplification within the group.