America Movil SAB de CVBMV: AMX/B

America Movil's Claro agrees to buy Brazil's Desktop in $753 million deal

· Issued by America Movil SAB de CV

Telecom operator Claro, owned by Mexico's America Movil BMV:AMX/B, said on Sunday it has agreed to acquire a 73% stake in Brazilian internet provider Desktop BMFBOVESPA:DESK3 for an enterprise value of 4 billion reais ($752.93 million).

The base equity price, after deducting Desktop's net debt, is about 2.41 billion reais, or 20.82 reais per share, Claro said in a securities filing.

  • The share price represents a 44.5% premium over Desktop's Friday closing price of 14.40 reais.

  • The deal requires approval from Brazil's antitrust regulator CADE and telecom regulator Anatel.

  • Following the transaction, Claro will launch a public tender offer for remaining Desktop shares at no less than the acquisition price per share.

  • Desktop specializes in fiber-optic internet services.

  • America Movil is controlled by the family of Mexican billionaire Carlos Slim.

($1 = 5.3126 reais)

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