America Movil to buy 21% in Telekom Austria from Ronny Pecik

Mexico's telecommunications company America Movil SAB de CV (AMX) has agreed to buy a 21 per cent stake in Telekom Austria from investor Ronny Pecik, which will increase the holding of AMX, controlled by Carlos Slim, the world's richest man, to around 23 per cent.

"This acquisition positions AMX as a long-term strategic partner of Telekom Austria. It is part of AMX geographic diversification strategy and provides an attractive presence in Central and Eastern Europe," said Telekom Austria.

Last month, Austrian magazine Format had reported that AMX has held initial talks with two of Telekom Austria's largest shareholders - Austrian state holding company OeIAG, which holds a 28.4 per cent stake and Pecik and his partner Egyptian billionaire Naguib Sawiris, who collectively hold 20 per cent. (See: Carlos Slim's America Movil eyes stake in Telekom Austria: report)

AMX, which already holds 1.7 per cent in Telekom Austria, said that it yesterday purchased an additional 5 per cent and will get another 16 per cent more after receiving governmental and regulatory approvals.

"As of today, after giving effect to the approximately 5 per cent acquisition, AMX total interest in Telekom Austria is 6.7 per cent and, upon consummation of the acquisition of the additional 16 per cent stake, AMX total interest will be approximately 23 per cent," AMX said in a statement.

AMX, which this month launched a $3.5 billion raid on Dutch telecoms company KPN NV, did not disclose the financial terms of the deal, but the 21 per cent stake would be valued around €748 million ($945 million) on Telekom Austria yesterday closing price.