MEXICO CITY, Sept 6 (Reuters) – Mexican cellular phone operators Iusacell and Unefon said on Wednesday they had agreed to merge and aimed to create the country’s second-largest mobile service provider.

The merger of the two companies, both controlled by Mexican industrialist Ricardo Salinas, follows Iusacell’s (CEL.MX: Quote, Profile, Research) restructuring of $350 million of debt, completed on Aug. 28.

Unefon Holdings SA (UNEFONA.MX: Quote, Profile, Research) also said on Wednesday it would acquire a 45.6 percent stake in Unefon to bring its ownership to 100 percent. It said it would buy the stock from the family of key shareholder Moises Saba for $300 million.

Merging Iusacell and Unefon will create a company with around 3.3 million subscribers, putting it in third place in terms of subscriber numbers behind market leader America Movil (AMXL.MX: Quote, Profile, Research) with 39.2 million and Telefonica Moviles (TEF.MC: Quote, Profile, Research) with some 6.9 million.

Iusacell said it was aiming for the merger to lift it to the number two spot in terms of total mobile voice and data services.

Spokesmen for the companies were not available to give further details.

The move had been anticipated by investors. Iusacell’s shares have more than doubled in value in the last six months on rumours of the merger, as well as on the company’s debt restructuring.

Citigroup said in a report last month that if the merger went ahead, “the additional benefit on Iusacell’s stock from current levels could be substantial”.

Iusacell shares ended Wednesday down 4.7 percent at 67.69 pesos. The merger announcement came after the market closed.

Unefon shares do not trade regularly.

Salinas

, among

Mexico

‘s richest men, bought Iusacell in 2003. He promised at the time to come up with a business plan to expand its presence in the Mexican market.

Source- http://today.reuters.com

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