AT&T has agreed to sell its entire 8.27% stake in America Movil for US$5.57 billion.
In an SEC filing late last week the U.S. telco said it will offload the shares to Inmobiliaria Carso and Control Empresarial de Capitales, both of which are controlled by America Movil owner Carlos Slim.
AT&T will receive $4.57 billion on the closure of the share sale and a further $1 billion within the subsequent 60 days.
The telco sold its stake in order to boost its chances of getting the required approvals for the proposed $48.5 billion acquisition of DirecTV it announced last month.
While AT&T is predominantly buying the satellite operator to boost its domestic TV business, DirecTV also has around 18 million pay TV customers in Latin America. AT&T hopes to avoid any regulatory or antitrust pitfalls in the region by pulling out of America Movil.
Meanwhile, regarding its own expansion plans, America Movil on Monday revealed that it has gained the regulatory approvals it needs for its partnership deal with OIAG in Austria that will see it gain operational control of Telekom Austria. As a result, its offer for the telco's outstanding shares is now mandatory.
The eight-week acceptance period for shareholders to sell out to America Movil began on 15 May and will run until 10 July. The Mexican firm has offered €7.15 per share.