America Movil offer to acquire up to 40.04% of the outstanding shares of Teléfonos de México, S.A.B de C.V.

 

Mexico City, Mexico, August 1, 2011 -- América Móvil, S.A.B. de C.V. (“AMX”) (BMV: AMX; NYSE: AMX; Nasdaq: AMOV; LATIBEX: XAMXL) announced today that its Board of Directors approved a tender offer for all of the outstanding shares of capital stock of all classes of Teléfonos de México, S.A.B. de C.V. (“Telmex”) that are not already owned, directly or indirectly, by AMX. The tender offer would include those shares that are represented by American Depositary Shares (“ADSs”).

If all shareholders tender, AMX would acquire 40.04% of the outstanding shares of Telmex and would directly or indirectly own 100% of the outstanding Telmex capital stock upon completion of the offer.

The purchase price will be $10.50 Mexican pesos per share payable in cash. This price reflects an 11.1% premium over the average trading price of the “L” share on the Mexican Stock Exchange (Bolsa Mexicana de Valores) over the last 30 days.

If AMX acquires a sufficient number of shares, it intends to delist Telmex from the various stock markets on which its shares are listed.

With this transaction, AMX, a competitive and strong publicly traded Mexican corporation, will be in a position to provide better conditions and more advanced telecommunication services to its customers in Mexico.

The tender offer will be subject to customary conditions, including the receipt of regulatory authorizations.

In addition to the 59.96% of the outstanding shares of TELMEX, which are currently held by AMX, with this purchase, AMX would hold, directly or indirectly, the total outstanding shares of TELMEX.

The offer will be subject to the necessary regulatory authorizations, including the authorization of the National Banking and Securities Commission (“Comisión Nacional Bancaria y de Valores”) or any other that may be applicable. Moreover, under the terms of TELMEX´s by-laws, its Board of Directors will resolve on the commencement of the offer by América Móvil.