Telecom Argentina S.A. (NYSE: TEO, BASE: TECO2), a mobile and fixed telecommunications company in Argentina, and CablevisiÃ³n S.A., the paid TV provider and leader in the broadband market in Argentina and the second largest paid TV provider in Uruguay, plan to merge their respective corporate structures and operations with the aim of creating a provider of convergent telecommunications services and to participate in the opening of the telecommunications sector that, according to Argentine regulations, is expected to occur beginning in January 2018, the companies said.
The boards of directors of the companies have approved a preliminary merger agreement.
The proposed transaction follows a worldwide convergent trend towards combining the provision of fixed and mobile telecommunications services, distribution of video and internet, known as “quadruple play”.
Telecom Argentina has engaged J.P. Morgan Securities LLC as the exclusive financial advisor for this transaction.
Telecom is the parent company of a telecommunications group in Argentina, where it offers, either or through its controlled subsidiaries local and long distance fixed-line telephony, cellular, data transmission and Internet services, among other services. Additionally, through a controlled subsidiary, the Telecom Group offers cellular services in Paraguay. The company commenced operations on November 8, 1990, upon the Argentine government´s transfer of the telecommunications system in the northern region of Argentina.