A1 Telekom Austria Group has confirmedit will spin off of its tower business as a separate company, EuroTeleSites, and listing the company on the Vienna Stock Exchange, starting next week.

The listing will commence on September 22, subject to receiving the necessary approvals.

Austrian towers
– Getty Images

"Shareholders of Telekom Austria AG will receive one additional EuroTeleSites share for every four Telekom Austria shares held (the number of Telekom Austria shares held by each shareholder will remain unchanged by the spin-off)," said A1 Telekom in a statement.

In June, the telco's board named Ivo Ivanovski as CEO and Lars Mosdorf as CFO of EuroTeleSites AG, as the agreement was formalized.

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

"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 back in February.

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.