Mexico’s America Movil to propose combination of share series

FILE PHOTO: Americal Movil corporate offices, in Mexico City

MEXICO CITY (Reuters) -Mexican telecommunications giant America Movil will propose reclassifying three of its share series to shareholders, the company said Tuesday.

The “AA,” “A” and “L” share series would become part of the company’s “B” series, it said in a filing. The change would require amending the company’s bylaws and will be subject to regulatory authorization, America Movil said.

The change is meant to consolidate America Movil’s ordinary shares and give their shareholders the same rights, said Benjamin Alvarez, an analyst at CIBanco.

In Mexico, shares are frequently divided into several series versus the traditional binary distinction between preferential and ordinary shareholders, he explained.

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Preferential shareholders in America Movil – which include family members of Mexican magnate Carlos Slim – will still hold more weight in the company, Alvarez said.

(Reporting by Kylie Madry; Editing by Isabel Woodford and Jonathan Oatis)