Merged entity will create a more credible competitor in Argentine telecoms and TV markets.
Telecom Argentina’s shareholders have approved the company’s merger with broadband and cable TV provider Cablevision.
At a shareholder meeting on 31 August, the telco’s holders gave the go-ahead for the deal that was announced two months ago, according to a document shared by Telecom Argentina.
The approval is conditional on the deal obtaining the relevant regulatory approvals and fulfilling its other closing conditions, the telco said.
Telecom Argentina and Grupo Clarin-owned Cablevision announced their all-stock merger in early July.
Under the terms of the agreement, Cablevision will be absorbed by Telecom Argentina, but Cablevision will hold a 55% stake in the merged entity and Telecom Argentina the remaining 45%.
The merged entity will be a strong competitor in Argentina, particularly when it comes to offering quad-play services.
Cablevision has a stronger broadband base than Telecom Argentina, as well as bringing a pay TV asset, while Telecom Argentina boosts Cablevision’s mobile presence; Cablevision acquired mobile minnow Nextel last year.