Telmex International Spinoff Heard Coming Soon

The spinoff of Telmex International from the Mexican telecom giant is on the way to market soon, say bankers. The plan, announced late last year, involves dividing Telmex into two separate companies by spinning off all LatAm businesses and the Mexican yellow pages business, which already has an international presence, to a new holding company. The deal is aimed at boosting efficiency and allowing each unit to operate autonomously for administrative, commercial and financial purposes. It also intends to improve Telmex in Mexico by allowing it to “distinguish operations in the middle and high-revenue markets, in which there is competition, from the low-revenue and rural markets, in which there is no competition,” says the telecom. The new holding company will be listed in Mexico and the US. The move should help free Telmex from pressure that recent government anti-trust actions put on the company’s stock, say analysts. Shareholders approved the split in December.