With a 91% stake, the company founded by Carlos Slim will convert convertible notes into shares, an event that must have the approval of the National Economic Prosecutor's Office (FNE).

Through an essential fact sent to the Financial Market Commission (CMF), the company América Móvil, founded by the Mexican magnate Carlos Slim, announced that it will take control of ClaroVTR, in an operation that must have the approval of the National Prosecutor's Office Economic (FNE) of Chile.

As detailed in the statement to the regulator, América Móvil (AMX) “will convert the convertible notes it owns into ClaroVTR shares.” This means that the company will have a majority stake of 91%.

On the other hand is Liberty Latin America Ltd. (LLA), who will continue as owner with a participation of approximately 9% of the capital of the telecommunications company.

América Móvil will take control of ClaroVTR operations

“The shareholders agreement, which will be in force as of the conversion of the notes, will reflect corporate governance in accordance with these shareholdings. The parties expect that the closing of the conversion will take place during the third quarter of 2024,” adds the essential fact.

From América Móvil, its CEO Daniel Hajj said he looked forward to the development of the new business with great interest. “Our partnership with Liberty Latin America contributed to the establishment of a converged connectivity service provider that provides its customers with world-class products and services.”

On the other hand, the general manager of LLA, Balan Nair, maintained that “this step is the correct one for ClaroVTR and in the best interest of the shareholders of Liberty Latin America,” pointing out Carlos Slim's company as “an excellent partner and the ClaroVTR business is led by a great management team.”

It was in October 2022 when the National Economic Prosecutor's Office approved the merger between Claro and VTR, ruling out - according to the entity - the existence of unilateral risks of price increases or a decrease in quality in fixed services.

However, the FNE did warn that, if mitigation measures were not carried out, a risk could be generated for competition in the wireless services sector, to which both companies presented a divestment package.