Schoenherr is advising América Móvil group, a leading provider of telecommunications services in Latin America, in its participation in the up to EUR 1 billion capital increase announced by Telekom Austria AG. The transaction was announced on 7 November 2014 and is expected to close on 27 November 2014. América Móvil group intends to subscribe to the capital increase in proportion to its existing 59.7% shareholding in the Vienna-based telecommunications group, and will invest EUR 604 mn to acquire 132.2 mn new shares at EUR 4.57 each, thereby covering the biggest part of the cash injection.

Fellow Telekom Austria core shareholder OIAG (the Republic of Austria’s state holding company) has stated that it also intends to exercise its subscription rights in full, investing EUR 287 mn in order to maintain its 28.42% stake. In April 2014, the two core shareholders entered into a shareholders’ agreement that also included their joint support of a capital increase in Telekom Austria of up to EUR 1 billion. Schoenherr also advised the América Móvil group on that shareholders’ agreement and on its subsequent public takeover offer for Telekom Austria.

The subscription period for Telekom Austria's rights offering commenced on 10 November 2014 and is expected to end on 24 November 2014. Both América Móvil group and OIAG have committed themselves to a lock-up period ending six months after the first day of trading of the new shares on the Vienna Stock Exchange, which is expected to occur on 27 November 2014.

The Schoenherr team advising América Móvil group on its participation in the capital increase is led by Ursula Rath (partner, Capital Markets) and also includes Christian Herbst (partner, Corporate/M&A), who already advised América Móvil group on the shareholders’ agreement and the public takeover offer.

Telekom Austria is advised by Eisenberger & Herzog as to matters or Austrian law and internationally by White & Case. Cerha Hempel Spiegelfeld Hlawati is counsel to OIAG.

Dorda Brugger Jordis and Clifford Chance serve as counsel to the joint bookrunners Erste Group Bank, Citigroup Global Markets, Deutsche Bank, Raiffeisen Centrobank and UniCredit Bank Austria.