Sunday, January 29, 2023

America Movil recovers value after spin-off from Sitios Latam and Claro businesses in Chile and Panama

share price of mobile america it’s okay About 16% since Sept. 30 A day after a disastrous start to 2022 LATAM sites,

America Movil divested its infrastructure arm to maximize assets such as base stations, antennas, exchanges and other telecom components for 4G and 5G connectivity deployments in Latin America.

LATAM sites Lost 34.76% of the value of its titles on the first day of listing BMV And just recovered from those losses.

América Móvil, telecommunications conglomerate of the businessman’s family Carlos Slim HeluIts share had already declined significantly since January 2022, mainly due to negative performance factors in some of its business units outside Mexico.

“action of America Movil to Lose 16.73% During 2022A decline that exceeds the negative balance of BMV’s IPC, which has fallen 5.96% to this point”, Antonio Sandoval, the financial analyst consulted for this article, said.

One might think that the company and the stock are going through bad times, but that may be an assumption that is far from reality for those who are not familiar with the strategic thinking of Carlos Slim, chairman of Lifetime Holding Company, because América Móvil invests in the long term, positioning itself in sectors and regions that assume exponential growth in the future and the recent spin-off of Sitios LATAM will confirm the historical trend of the consortium”, said Sandoval.

LATAM Sites’ average price per share today is 9.20 pesos, higher than the all-time low of 8.40 pesos per share. And America Movil Persists Market capitalization of 1.14 trillion pesos in BMV.

Stock volatility was also a significant influence generated by subsidiaries that reported little profit to their parent: the mass-market telecommunications business in Chile and Panama, and the infrastructure arm, today known as Sitios LATAM. It is called

As an example, a day after the Panamanian Competition Authority authorized América Movil to sell its local business unit to the operator Liberty Latin AmericaAMX titles gained eight cents and on July 6 the value of the shares again touched the 20-peso mark.

America Movil is a company that does not know how to loseBecause there was a possibility of their merger after October 8. Loss-making mobile business in Chile with cable company operations VTR, also from LibertyIts stock climbed to 16.81 pesos, the best positive mark since its fall in September.

Panama and Chile The holding level caused financial trouble for the company. In Chile, América Movil was at risk of becoming the fourth largest operator in the local market due to exponential growth. wom and could never end movistar and to the leader antel, Still in 2021, Claro Chile had a net loss of $77 million and its ARPU, measured in dollars, was projected to increase from $9 in 2017 to $5.6 in 2021.

In Panama, América Móvil found it difficult to compete with Tigo and decided to divest the business to Liberty with 160 million in annual revenue and close to 800,000 mobile customers. right there in panama Telefónica Movistar He had already left that business unit to Tigo for a $650 million payment. and Digicel also left Panama due to the impossibility of competing with the new Liberty and Tigo,

The detachment of businesses in Panama, the merger in Chile and the spin-off of Sitios LATAM have added to the opportunities the company recognizes for reporting consistent dividends to its shareholders, hence the first sales semester for TracFone for Verizon in the United States. .

“America Movil has an enormous natural ability to identify opportunities in the market (…) Quickly gets rid of everything that doesn’t generate business, sold Tracfone, separated the infrastructure division, merged operations and sold and merged other businesses in Central America; And compete by investing with a solid treasury. For this reason, today it is one of the best ranked and valued stocks by investors because of this stability.” DPL Group,

Nation World News Desk
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