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MarketScreener Homepage  >  Equities  >  Mexican Stock Exchange  >  América Móvil, S.A.B. de C.V.    AMX L   MXP001691213

AMÉRICA MÓVIL, S.A.B. DE C.V.

(AMX L)
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America Móvil B de C : Verizon to buy pre-paid mobile service Tracfone in $6.25 billion deal

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09/14/2020 | 11:07am EDT
A man stands next to the logo of Verizon at the Mobile World Congress in Barcelona

Verizon Communications Inc said on Monday it will buy pre-paid mobile phones provider Tracfone, a unit of Mexican telecoms giant America Movil, in a $6.25 billion cash and stock deal.

Tracfone, which serves about 21 million subscribers through more than 90,000 retail locations across the United States, said more than 13 million of its subscribers rely on Verizon's network under an existing agreement. Verizon is the largest U.S. wireless carrier by subscribers.

The U.S. wireless industry is concentrated in the hands of three mobile carriers due to several mergers in recent years: T-Mobile, which in April completed its $23 billion merger with Sprint Corp to solidify its position in the United States; AT&T Inc, and Verizon.

America Movil, which was created from a state monopoly, is Mexico's largest telecoms operator by far and is controlled by the family of Mexican billionaire Carlos Slim, the Latin American nation's richest man.

Verizon has not historically invested in prepaid compared with its rivals, such as T-Mobile, which revamped its MetroPCS prepaid brand and bought Sprint, which had a large prepaid business.

Verizon's purchase of Tracfone comes at a time when the pandemic has ravaged the economy and Americans are cutting back on spending.

Tracfone had become popular with the lower end of the ultra-competitive U.S. telecoms consumer market and Verizon plans to provide new products for that segment after this "strategic acquisition," said Hans Vestberg, chairman and chief executive of Verizon.

"This transaction firmly establishes Verizon, through the Tracfone brands, as the provider of choice in the value segment, which complements our clear leadership in the premium segment," added Ronan Dunne, executive vice president and group CEO, Verizon Consumer Group.

Shares of Verizon were up more than 1% in morning trading. American Movil shares jumped more than 3.5% when the Mexican market opened.

The deal includes $3.125 billion in cash and $3.125 billion in Verizon stock.

Credit Suisse is acting as financial adviser to Verizon on the deal, which is expected to close in the second half of 2021.

(Reporting by Ayanti Bera in Bengaluru and Drazen Jorgic in Mexico City; Additional reporting by Sheila Dang; Editing by Vinay Dwivedi, Will Dunham and Dan Grebler)

Stocks mentioned in the article
ChangeLast1st jan.
AMÉRICA MÓVIL, S.A.B. DE C.V. 1.05% 13.51 End-of-day quote.-10.53%
T-MOBILE US 1.33% 112.02 Delayed Quote.42.85%
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Financials
Sales 2020 1 022 B 45 742 M 45 742 M
Net income 2020 41 492 M 1 858 M 1 858 M
Net Debt 2020 711 B 31 851 M 31 851 M
P/E ratio 2020 26,1x
Yield 2020 2,42%
Capitalization 898 B 40 017 M 40 191 M
EV / Sales 2020 1,57x
EV / Sales 2021 1,45x
Nbr of Employees 186 835
Free-Float 47,8%
Chart AMÉRICA MÓVIL, S.A.B. DE C.V.
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América Móvil, S.A.B. de C.V. Technical Analysis Chart | MarketScreener
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Technical analysis trends AMÉRICA MÓVIL, S.A.B. DE C.V.
Short TermMid-TermLong Term
TrendsBearishNeutralBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 14
Average target price 17,76 MXN
Last Close Price 13,51 MXN
Spread / Highest target 62,8%
Spread / Average Target 31,5%
Spread / Lowest Target 11,0%
EPS Revisions
Managers
NameTitle
Daniel Hajj Aboumrad Chief Executive Officer & Executive Director
Carlos Slim Domit Chairman
Carlos José García Moreno Elizondo Chief Financial Officer
Luis Alejandro Soberón Kuri Director
David Antonio Ibarra Muńoz Independent Director
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