Cablevisión Holding has informed Argentina’s Comisión Nacional de Valores (CNV) and the Buenos Aires stock exchange that it has acquired shares representing an indirect interest of 6.08% in Telecom Argentina post-merger.
Following an agreement signed last July, when the merger plans between the pay-TV operator and the telco were outlined, shareholders of Cablevisión and Fintech (which controls part of both companies) would receive direct and indirect total participation in Telecom Argentina equivalent to 55% of the combined company's capital.
In this mix, Cablevisión would be allowed to buy up to 39% of the post-merger company shares. Through this agreement, Cablevisión has now increased its share in the post-merger company, though it will remain as a minority shareholder.
The shares acquisition has been carried shortly after Argentina’s market authority, Enacom, greenlit the merging operation, allowing the country’s largest pay-TV operator and leading telco to merge their businesses.
The merger also comes ahead of regulation changes that will start allowing services convergence from January 2018, positioning the new Telecom Argentina as the first quad-play provider in the country.