Grupo Salinas Sells Iusacell to AT&T for $2.5 Billion

MEXICO CITY: Ricardo B. Salinas, the chairman of Grupo Salinas, has agreed to sell Grupo Iusacell in its entirety to AT&T for $2.5 billion, an amount that includes debt.

As part of the agreement, Salinas will maintain the residential triple-play business Totalplay, in addition to the corporate Internet service, networks and fixed telephony operations of Enlace (presently subsidiaries of Grupo Iusacell) through which Grupo Salinas will provide additional support for their competitiveness in these markets. Totalplay has more than 130,000 users, and provides broadband Internet services, fixed telephony and pay television in Mexico City, Guadalajara, Cuernavaca and Toluca. The company doubled its number of subscribers over the past year, and expects to expand to 24 cities and 7.5 million households in the country over the next five years, compared to the current 1.5 million.

"After more than a decade of strengthening the positioning of the Iusacell and Unefon brands, the commercial performance and business management, we are leaving Grupo Iusacell with pride and satisfaction in the hands of a highly regarded world-class operator for the generation of superior value in the market,” said Salinas. "The entry of AT&T will bring optimal quality service alternatives to clients, in addition to progress for society as a whole; we wish them success in their operations in Mexico.”