Why exxon Mobil is selling the company’s stake in At&T
Exxon Mobil has announced a plan to sell its stake in wireless giant AT&T Inc. to a consortium led by a venture capital firm, which has an interest in helping the company grow its operations in China.
The move, which follows the company cutting its stake from 70% to 40% in 2015, was announced in a filing with the U.S. Securities and Exchange Commission on Wednesday.
Exxon Mobil shareholders will receive $10.40 per share in cash.
The company said the deal is expected to close in 2020.
It said AT&TC would be the consortium’s minority shareholder, but that it would remain the company.
The AT&ts $10 billion acquisition includes AT&t Inc., Charter Communications Inc., Verizon Communications Inc. and Cox Communications Inc..
Exxon Mobil had sold a minority stake in AT&TS to AT&F, which was formed by AT&TR, to buy out the other AT&Ts shares.
ExxonMobil also said it has agreed to divest its stake of AT&OT from the consortium, which includes Chinese telecom operator Huawei Technologies Co. and the telecom firm China Mobile Communications Co. The sale of ATTC’s stakes in China and AT&TT’s stake is one of the biggest deals in China’s telecommunications sector in recent years.
In 2015, Exxon Mobil announced it was pulling out of China, the world’s second-largest market, and had to spend $3.3 billion to buy back AT&TW.