America Movil to sell off Sercotel subsidiary

América Móvil has taken another step to make itself more amenable to Mexico's telecom regulators by moving to sell off its Sercotel holding company, reports Reuters, citing an announcement in Mexico's daily gazette.

During a meeting held on Jan. 7, Sercotel's shareholders agreed to spin off the company.

According to the announcement, Sercotel will have $2.08 billion in assets.

A spokesperson told Reuters in an e-mail that the pending sale of the Sercotel assets is part of a "simple reorganization" to simplify América Móvil's corporate structure.

América Móvil, Mexico's dominant wireline and wireless operator in Mexico, has been facing increasing scrutiny from the country's telecom regulator Ifetel. The regulator is pressuring America Movil to provide competitive providers greater access to its network infrastructure.

The service provider said in July that it would sell off assets in its portfolio in order to "reduce its national market share in the Mexican telecommunications market under 50 percent."

For more:
- Reuters has this article

Related articles:
America Movil's Q3 profit slides 39% to $754M
America Movil gets green light to consolidate Brazil operations
America Movil's pay TV additions drive up wireline-revenue generating units to 71.8M
Mexican legislators push through telecom overhaul
America Movil blinks first, says it will sell assets

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