America Movil to buy CIE's media and advertising unit
(EFE Ingles Via Acquire Media NewsEdge) Mexico City, Jan 21 (EFE).- Mexico City-based wireless giant America Movil has agreed to buy the media and advertising division of Corporacion Interamericana de Entretenimiento for nearly 1.7 billion pesos ($132 million), CIE said Monday.
In a filing with the Mexican Stock Exchange, CIE - also based in this capital - said that under the deal the Carlos Slim-controlled company would acquire CIE's advertising rights with Mexican professional soccer teams and stadiums.
CIE, a leading Latin American entertainment company whose activities include running sporting events and concerts and operating arenas and other venues, said the deal is subject to certain conditions, including regulatory approval.
Proceeds from the sale will be used for working capital and to pare debt, the filing said.
If approved, the deal will give America Movil control of a division that accounted for 20 percent of CIE's earnings before interest, taxes, depreciation, and amortization, or EBITDA, for the first nine months of 2012.
In addition to the soccer-related advertising rights, the acquisition would give American Movil large-format advertising slots on pedestrian bridges, as well as space in airports and public-transportation systems and on street furniture.
The deal also includes publicity at movie theaters and on digital screens at convenience stores.
America Movil, which operates in 18 countries across the Americas, had 318.7 million access lines at the end of September, including 255.9 million mobile phone subscribers, 30 million landlines, 16.7 million broadband accesses and 15.8 million pay TV subscribers. EFE
(c) 2013 EFE News Services (U.S.) Inc.
[ LatinAmerica.tmcnet.com's Homepage 's Homepage ]