TV Azteca, S.A. de C.V. (BMV: TVAZTCA), one of the two largest producers of Spanish- language television programming in the world, announced today the creation of Unefon Holdings, a controlling company that owns a 46.5% equity stake in Unefon (BMV: UNEFONA) and a 50% stake in Cosmofrecuencias, a wireless broadband Internet access provider, as a legal Mexican entity (Sociedad Anonima) independent from TV Azteca.
TV Azteca board members were a key element in the separation process. Starting early 2003 TV Azteca's Board unanimously decided against investing additional resources in Unefon. In June, the Board agreed that the settlement between Unefon and Nortel should be the sole responsibility of Unefon, with that company bearing the costs of the process. The Board took this stance because TV Azteca's six-year plan for cash usage is a financial priority for the company.
As previously announced, the cash plan entails cash distributions to shareholders of over US$500 million and TV Azteca debt reduction of approximately US$250 million by 2008. In October, the Board approved the split off of TV Azteca's investment in Unefon. The decision to separate all telecommunications assets from TV Azteca was finally ratified by TV Azteca shareholders on December 19.
As a consequence, TV Azteca has returned to a pure play media company, and existing TV Azteca shareholders will decide on their direct investment in the new telecommunications business. TV Azteca shareholders will be given shares of the new company in the same proportion of their TV Azteca ownership once Unefon Holdings is publicly traded, which is expected to occur by the second quarter of 2004.
For information regarding Unefon Holdings, please contact Hector Romero, investor relations officer of Unefon Holdings at 3099-0060 in Mexico City, hromero@gruposalinas.com.mx.
Company Profile
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a new broadcast television network focused on the rapidly growing US Hispanic market; Unefon, a Mexican mobile telephony operator focused on the mass market; and Todito.com, an Internet portal for North American Spanish speakers.
Except for historical information, the matters discussed in this press release are forward-looking statements and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Risks that may affect TV Azteca are identified in its Form 20-F and other filings with the US Securities and Exchange Commission.
CONTACT: Investor Relations, Bruno Rangel, +011-5255-3099-9167, or jrangelk@tvazteca.com.mx, or Omar Avila, +011-5255-3099-0041, or oavila@tvazteca.com.mx, or Media Relations, Tristan Canales, +011-5255-3099-5786, or tcanales@tvazteca.com.mx, or Daniel McCosh, +011-5255-3099-0059, or dmccosh@tvazteca.com.mx, all of TV Azteca, in Mexico
Web site: http://www.tvazteca.com.mx/
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