Shareholder OK for Telecom Argentina/Cablevisión merger
Telecom Argentina shareholders approve takeover of Cablevisión to create quad-play company
Telecom Argentina is closer to creating a quad-play operator after its shareholders approved a plan to buy cable TV operator Cablevisión.
The company told Argentinian authorities of the shareholders’ decision on Friday. Telecom Argentina is majority controlled by Sofora Telecomunicaciones and 45% publicly traded.
The two companies will still require regulatory approval, reported Reuters over the weekend. They aim to complete the merger from the start of 2018.
The boards of directors of the two companies approved the preliminary merger agreement in July. Under the deal Cablevisión will be merged into Telecom Argentina, which will be the surviving entity.
Telecom Argentina provides fixed services in the north of Argentina, including Buenos Aires, and – under the Telecom Personal brand – nationwide mobile services. It also has a mobile operation in Paraguay.
Cablevisión, previously part of the Clarín media company, runs pay-TV and broadband networks in Argentina and pay-TV in Uruguay. Clarín is spinning off the business.
Telecom Argentina was owned by France Telecom – now Orange – when privatised in the 1990s.
The merged company will be able to offer fixed and mobile telephony, as well as broadband internet access and television.