SCHAUMBURG, Ill.-Motorola said it completed the sale of its investments in four cellular companies in northern Mexico to Telefonica S.A. for more than $1.8 billion in Telefonica shares. The sale was first announced last October.
Motorola said the four companies, which began service in 1990, have a combined total of more than 1 million subscribers. Motorola owned 100 percent of Baja Celular, Norcel and Cedetel and 90 percent of Movitel.
Ownership of the four companies will later be transferred from Telefonica to Telefonica Moviles, the Spanish company’s wireless arm. Telefonica has been managing the companies since last year.
Motorola won a contract with the four operators last week to supply additional infrastructure and handsets. The U.S.-based vendor has been selling its stakes in international carriers because of conflicts with its infrastructure equipment business, it said.
“We view continued sales of non-core assets as a positive indication that Motorola is making good on its commitment to improve the company’s capital structure,” commented UBS Warburg.
Telefonica entered the lucrative Mexican market through the acquisition and is now the country’s third-largest operator. In addition, it owns a stake in Mexican cellular carrier Portatel del Sureste.
