AT&T cancels IPO for DirecTV Latin America

AT&T announced that it has decided to withdraw its planned initial public offering (IPO) of shares of Vrio, its DirecTV business in Latin America. In a short statement, the company said the decision was made based on current market conditions.
Last month, AT&T filed a registration statement with the U.S. Securities and Exchange Commission for a potential initial public offering of a minority interest in the Class A common stock of the TV business in Latin America, which includes operations in Brazil, Argentina, Colombia and Chile, among others. The stock was originally scheduled to debut on the New York Stock Exchange under the symbol “VRIO” last Thursday.
AT&T had previously downsized the IPO to 15 million Class A shares from 29.7 million Class A shares. The price range was also lowered from USD 19 to USD 22 per share to USD 16 to USD 17 each.
The company had planned to use the funds to reduce its debt after the announced acquisition of Time Warner, for USD 85.4 billion. AT&T completed the purchase of DirecTV in July 2015. In Latin America, the company owns 100% of the Pan American division, operating in countries such as Argentina, Venezuela, Chile, Colombia and Peru, among others, and 93% of SKY Brasil. In Mexico, it owns 41% of Sky in association with Televisa.