France Telecom, represented by Coudert Brothers, will sell its indirect interests in Telecom Argentina to W de Argentina, an affiliate of the Los W group, a leading Argentinean investment company. Consideration is US$125 million, to be paid in full at closing.
The closing of the transaction is expected to take place as soon as all necessary authorizations will be obtained, in particular legal and governmental authorizations.
The Telecom Argentina group is one of Argentina’s two main telecommunications operators. It provides local and long-distance telephony, mobile communications (through its subsidiary Telecom Personal), data and Internet access services in northern Argentina. It also operates a mobile license in Paraguay through one of its subsidiaries.
Telecom Argentina stock is listed on the Buenos Aires and New York stock exchanges (as ADRs). Nortel preferred shares are listed on the Buenos Aires and New York stock exchanges.
Marcello Hallake of Coudert Brothers LLP leads the firm’s team advising France Telecom on this transaction. He is being assisted by associates Joseph J. Cerise and Alan F. Zoccolillo Jr. All are based in New York.
Interest in CTE Salvador Sold for US$417 Million
France Telecom and CAC (a group of private Salvadoran partners) agreed to sell their 51 percent indirect interest in El Salvador’s operator, CTE Salvador, to America Movil for US$417 million, payable in cash at the closing of the transaction.
The closing will occur before the end of November 2003, subject to prior legal and governmental approvals.
Since 1998, when the France Telecom-led consortium Estel LLC won an international tender, acquiring a 51 percent interest in the company, CTE has become a competitive company, adapting to the liberalization of El Salvador’s telecommunications market. The operator provides a complete range of telecommunications services to private customers and businesses: fixed-line and mobile telephony, data transfer and Internet services. CTE also operates in Guatemala through its subsidiary, Cablenet.
Carlos E. Mendez-Peñate and Marcello Hallake lead the Coudert Brothers team advising France Telecom on this transaction. They are being assisted by associates Armando X. Ramirez and Arie Heijkoop Jr.
America Movil is being advised by New York’s Cleary Gottlieb Steen & Hamilton.
