PHILADELPHIA-Bell Atlantic Corp. will assume management control over operations of Mexican cellular carrier Grupo Iusacell SA de C.V., according to a preliminary agreement between Bell Atlantic and the Peralta family.
Grupo Iusacell is part of Grupo Iusa, a Mexican industrial group owned by the Peralta family.
Bell Atlantic said it will transfer Series B and Series D shares for a controlling interest in the Peralta group’s Series A shares at a premium of $50 million. Bell Atlantic will gain a majority of the board seats, but the aggregate share will remain 48 percent for the Peralta group and 42 percent for Bell Atlantic.
Lawrence T. Babbio Jr., vice chairman of Bell Atlantic, will be Grupo Iusacell’s vice chairman, replacing Carlos Peralta, who will remain on the board of directors.
“Our Grupo Iusa manufacturing portfolio is expanding rapidly and demanding significantly more time and effort, in view of the tremendous increase in exports,” said Peralta. “With competition a reality in Mexican telecommunications, we think now is the right time for our partner, Bell Atlantic, to take the lead at Grupo Iusacell.”
The agreement is subject to completion of a definitive agreement and approvals of Bell Atlantic’s board of directors and Grupo Iusacell shareholders.
“We believe the Mexican telecommunications market presents tremendous opportunitites,” said Babbio.
