[Vodafone buys a $1 Billion stake on CEL]
Friday January 5, 7:46 pm Eastern Time
Press Release
Grupo Iusacell, S.A. de C.V. Announces
MEXICO CITY--(BUSINESS WIRE)--Jan. 5, 2001--Grupo Iusacell,
S.A. de C.V. (BMV: CEL, NYSE: CEL) today announced that Grupo
Peralta, one of its principal shareholders, has informed
Iusacell that together with other individuals associated with
it, have agreed to sell their entire 34.5% equity stake in
Iusacell to Vodafone Group Plc for US$973.4 million.
The transaction is subject to, among other things, regulatory
approval by the Comision Federal de Competencia (the Mexican
Federal Competition Commission) and the signing of a
shareholder agreement between Vodafone and Verizon
Communications Inc.
Grupo Iusacell, S.A. de C.V. (Iusacell, NYSE: CEL; BMV: CEL)
is a leading independent telecommunications company in
Mexico. It provides wireless cellular service in four of
Mexico's nine regions in the central portion of Mexico
(including Mexico City) covering a total of 68 million POPs,
representing approximately 69% of the country's total
population. Iusacell is under the management and operating
control of subsidiaries of Verizon Communications Inc. (NYSE:
VZ - news).
Contact:
Grupo Iusacell, S.A. de C.V.
Investor Contacts: Ian C. Muir:, Director of Investor
Relations, 011-525-109-5755
ian.muir@iusacell.com.mx
==========================================
Monday January 8, 4:01 am Eastern Time
Vodafone confirms $1 bln entry into Latin America
LONDON, Jan 8 (Reuters) - Vodafone Group Plc (quote from
Yahoo! UK & Ireland: VOD.L) confirmed on Monday that it will
buy a 34.5 percent stake in Mexico's second largest mobile
phone operator Iusacell (NYSE:CEL - news) for $973.4 million,
marking its entry into Latin America.
The world's biggest wireless telecoms company will continue
its recent acquisition blitz by paying for the stake in cash,
underlining the strength of its balance sheet relative to the
debt-laden telecoms industry.
``This is a significant investment as it marks Vodafone's
entry into the Latin American market and a continuation of
our global expansion strategy,'' said William Keever,
president of Vodafone Americas Asia Inc.
``With only 2.2 percent company subscriber penetration in its
four cellular regions, Iusacell represents an extraordinary
growth opportunity for Vodafone.''
Iusacell said on Friday that Vodafone would buy its stake
from Grupo Peralta. Vodafone will have a smaller stake than
Verizon Communications (NYSE:VZ - news), the biggest local
telephone company in the United States, which owns a 37
percent controlling stake in Iusacell.
Mexico's fast-growing, 11-million mobile phone market is
hotly contested by major global telecoms players such as
Telefonica, former Mexican state monopoly Telefonos de Mexico
(NYSE:TMX - news) and Verizon.
Verizon and Vodafone are joint owners of Verizon Wireless,
the biggest U.S. wireless phone company, with some 27.5
million clients by the end of year 2000.
Iusacell had some 1.5 million subscribers as of June and
operates primarily in central Mexico.
The sale, which Vodafone expects to complete in the first
quarter of 2001, must be approved by Mexican competition
authorities.
Lehman Brothers advised Vodafone on the transaction.
================================
Excerpts from another article:
==
The global giants have good reason to turn their attention to
Mexico, where mobile subscribers recently eclipsed fixed
lines. Annual mobile subscriber growth was nearly 97.2% in
September after peaking at 130.8% in 1999. Mexico also offers
a link with the growing Hispanic population in the U.S.
==
The price tag values Iusacell, which had 1.54 million
cellular subscribers at the end of September, at a 70%
premium to its latest share price. On Friday, American
depositary shares of Iusacell had gained 25 cents to $11.50
in 4 p.m. New York Stock Exchange trading. Iusacell had a
loss of 50 million pesos ($5.1 million or 5.3 million euros)
on revenue of 1.38 billion pesos in the third quarter.
==
Full article:
public.wsj.com
=============================================
So let me interpret this:
They say the deal values CEL at a 70% premium to its
latest share price. They say that CEL gained $0.25 to
$11.50 per American Depository share on Friday. So I
think the "latest share price" must have been $11.25
and that the deal therefore values CEL at $19.125/sh.
Near-term price target: $19/sh.
Rob |
