Mexico City – Mexican billionaire Carlos Slim's America Movil (AMX) said it was seeking a stake of up to 28 percent in Dutch telecom company KPN to expand its presence in Europe.
America Movil, which currently holds a 4.8 percent stake in KPN, is offering eight euros per share for the additional stock, covering the purchase with cash on hand, the Mexican telecom company said in a filing with securities regulators.
The offer for KPN "represents the first significant investment by AMX in Europe," America Movil said in a statement, adding that the deal would allow it to take a minority stake in a telecom company that has "a relevant position in the European market."
The goal is to "build and develop a lasting relationship with the management and shareholders of KPN," allowing both companies to benefit from the expertise they possess in the technology and marketing areas, America Movil said.
The offer for a bigger stake in KPN is part of a strategy to "expand operations to other regions outside the Americas," America Movil, which has operations in 19 countries in the Western Hemisphere, said.
America Movil, which started out as a subsidiary of Telmex in the 1990s, was spun off in 2000 to focus on the wireless telecommunications business.
The wireless company eventually became bigger than Telmex and Slim, who is ranked by Forbes as the world's richest person with a fortune of $74 billion, unified control of his companies under America Movil in 2010.
As of March 31, America Movil had 306 million customers, of whom 246 million were wireless customers, 30 million had landlines, 16 million were broadband customers and 14 million were television subscribers.
America Movil has operations in Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Puerto Rico, the United States and Uruguay.