—To look for a strategic partner to further boost the company's solid growth—
—Grupo Iusacell will take advantage of extensive market opportunities made possible by new telecommunications legal framework in Mexico—
MEXICO CITY, Sept. 10, 2014 (GLOBE NEWSWIRE) -- Grupo Salinas (www.gruposalinas.com), a group of dynamic, fast-growing and technologically advanced companies, deeply committed to the modernization of the countries in which it operates, announces today that its Chairman, Ricardo B. Salinas, will buy 50% of the shares of Grupo Iusacell from Grupo Televisa, for US$717 million. With this transaction, Mr. Salinas will fully own the equity of Grupo Iusacell.
Ricardo Salinas thanks the trust and support of Grupo Televisa during these past three years of partnership. "I express my recognition and gratitude to President and CEO of Grupo Televisa, Emilio Azcarraga, and his executive team for the administrative talent that resulted in solid added value for the development of the company and for furthering competition in the telecommunications sector".
Mr. Salinas is in the process of selecting a world-class strategic partner to strengthen the robust performance of the company and jointly boost the most competitive telecommunications offer in Mexico.
Grupo Iusacell is currently the most dynamic telecommunications operator in the country; in the last three years, it doubled its customer base to 8 million today, and increased its revenue by approximately 50%, based on core strengths of the company that has allowed to outperform its competitors.
By means of its two widely recognized brands, Iusacell and Unefon, the company attacks different parts of the market to maximize growth; with the Iusacell brand, 25% of its subscribers are postpaid users, with higher income and superior loyalty, while the Unefon brand serves the mass market with low-cost value oriented offers.
With its spectrum, the company has coverage throughout the country, and a fiber optic network with a dense urban deployment in large cities that allows maximum data transmission speed. With its commercial network comprised of more than 550 Iusacell branded points of sales across Mexico, the company provides timely, top quality customer service.
The recently approved legal framework in Mexico favors competition, thanks to access to the preponderant's infrastructure, asymmetric interconnection, national roaming at a regulated price, and the unblocking of prepaid terminals that allows users to switch companies, without the subsidy cost to the new operator.
Under the new rules, Grupo Iusacell will deploy its commercial and technology infrastructure to more markets in Mexico. This, together with the most innovative plans and high-tech equipment, generates continuing opportunities for the company's expansion, in one of the top ten global markets.
The purchase of shares of Grupo Iusacell represents a vote of confidence by Ricardo Salinas in the growth perspective of the company, as well as in the Mexican economy.
Grupo Salinas believes that the purchase of shares of Grupo Iusacell, under the proposed terms, further strengthens the leading telecommunications service, with superior technology platforms in benefit of millions of families and companies.
The transaction is subject to the authorization of the Federal Telecommunications Institute of Mexico and the opinion of the Ministry of Communications and Transport.
Grupo Salinas Profile
Grupo Salinas (www.gruposalinas.com) is a group of dynamic, fast growing, and technologically advanced companies focused on creating shareholder value, building the Mexican middle class, and improving society through excellence. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. These companies include: Azteca (www.tvazteca.com.mx ; www.irtvazteca.com) Azteca America (www.aztecaamerica.com), Grupo Elektra (www.grupoelektra.com.mx), Banco Azteca (www.bancoazteca.com.mx), Advance America (www.advanceamerica.net), Afore Azteca (www.aforeazteca.com.mx), Seguros Azteca (www.segurosazteca.com.mx) and Grupo Iusacell (www.iusacell.com). Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings.
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Source: Grupo Salinas