—A world-class enterprise will further boost the offerings of highly competitive telecommunications in Mexico, benefiting millions of users—
— "After strengthening positioning and operations, we leave Grupo Iusacell in the hands of a formidable company to generate further value in the market" —
MEXICO CITY, Nov. 7, 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 they operate, announced today that its chairman, Ricardo B. Salinas, sells Grupo Iusacell in its entirety to AT&T for US $ 2.5 billion, an amount that includes debt.
Grupo Salinas is confident that the operational strength and sound business strategy of AT&T will bring superior options in the telecommunications sector, and will positively impact the wellbeing of families, organizational efficiency and competitiveness of the country as a whole.
"After more than a decade of strengthening the positioning of the Iusacell and Unefon brands, the commercial performance and business management, we are leaving Grupo Iusacell with pride and satisfaction in the hands of a highly regarded world-class operator for the generation of superior value in the market," said Mr. Salinas. "The entry of AT&T will bring optimal quality service alternatives to clients, in addition to progress for society as a whole; we wish them success in their operations in Mexico."
As part of the agreement, Ricardo Salinas will maintain the residential triple play business Totalplay, in addition to the corporate Internet service, networks and fixed telephony operations of Enlace –presently subsidiaries of Grupo Iusacell– through which Grupo Salinas will provide additional support to their competitiveness in these markets.
Totalplay has over 130,000 users, and provides world-class broadband Internet services, fixed telephony and pay television in Mexico City, Guadalajara, Cuernavaca and Toluca. The growth of Totalplay is noteworthy, with dynamic expansion plans. The company doubled its number of subscribers over the past year, and expects to expand to 24 cities and 7.5 million households in the country over the next five years, compared to the current 1.5 million.
Thanks to its network of fiber direct to the home (FTTH), the company has the most advanced broadband Internet platform in Latin America, with maximum speed, optimum television signal quality, unparalleled applications for mobile devices, an extensive video on demand (VOD) catalog and voice telephony with outstanding clarity.
Enlace, meanwhile, provides Internet service with speeds of up to 10 gigabytes per second, as well as fixed telephony and data for networks, to more than 20,000 customers nationwide, from small businesses to corporate and government clients; and effective video surveillance services through technologically advanced monitoring centers in several states of Mexico, with solid growth prospects.
This and the previously announced operation– through which Ricardo Salinas acquires 50 percent of Grupo Iusacell from Grupo Televisa – are subject to authorization by the Federal Telecommunications Institute and the opinion of the Communications and Transportation Ministry.
Grupo Salinas is convinced that the agreement announced today is a direct result of the structural reforms undertaken by President Enrique Peña Nieto, which foment competition, expand growth opportunities in Mexico, and generate interest from world-class companies to invest and operate in the country.
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 Mexic an 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