Telecom Argentina, the leading mobile and fixed telecommunications company in Argentina, and the second largest cable TV provider Cablevision announced plan to merge.
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".
The transaction will allow the combined company to become a leader in convergent solutions that will fulfill its customers' digital life and facilitate the digital operations of enterprises and corporations. The combination of the two Companies will strengthen their investment in modern, mobile technology infrastructure as well as the build out of a high speed fiber optic network.
The current shareholders of Telecom Argentina will retain 45% of the capital stock, leaving Cablevision shareholders with 55% of the combined company.
The transaction is subject to the approval of the shareholders of each of the Companies.