A1 Telekom Austria has moved a step closer to spinning off its telecom infrastructure assets after formalizing plans at its latest meeting.

Through its supervisory board, the telco reached an agreement with its core group of shareholders to adopt formal resolutions around the spin-off.

Austrian towers
– Getty Images

As for the new tower company, it will be called EuroTeleSites AG and will be listed on the Vienna Stock Exchange by the end of 2023.

It still needs to be approved by Telekom Austria’s shareholders, which are expected to do so during an extraordinary general meeting set for August 1, 2023.

The company confirmed that its Board has named Ivo Ivanovski as CEO and Lars Mosdorf as CFO of EuroTeleSites AG.

Earlier this year, the decision to spin off these assets received public backing from two of A1's biggest stakeholders: América Móvil, and state-owned Austrian investment fund ÖBAG.

"The tower spin-off from the telecom business will enable a more efficient capital allocation and greater capacity at Telekom Austria to expand its overall investment plans," said América Móvil at the time.

América Móvil holds a majority stake in A1, with a 51 percent share, while ÖBAG holds 28.42 percent of the business.

Vienna-based A1 Telekom is the European unit of América Móvil and provides digital services and communications solutions under the A1 brand to around 27 million customers in Austria, Bulgaria, Croatia, Belarus, Slovenia, North Macedonia, and Serbia.

The transaction involves 12,900 cell towers across seven countries, with shareholders obtaining shares in the new tower company in proportion to their existing shareholdings.