Mexico. The Federal Institute of Telecommunications, IFT, determined not to authorize the request of The Walt Disney Company (Disney) and Twenty-First Century Fox, Inc., for an extension to the suspension of the disincorporation period to sell the Fox Sports business in Mexico, so that period ended on May 7, 2021.
The Parties requested the IFT to extend the suspension of the disincorporation period previously granted by the Plenary of the Institute, which expired on May 1. However, from the analysis carried out, the Institute considers that the circumstances caused by the COVID-19 pandemic, which at the time affected the Disincorporation Process, are different today; such is the case of the resumption of economic activities and various sporting events, advances in the vaccination processes of the population against the COVID-19 disease and the possibility of carrying out various work activities (including negotiations) from home, so it is not justified to extend the suspension of the Disincorporation Period again.
In terms of paragraph 8.4.11. of the Resolution contained in Agreement P/IFT/110319/122 of March 11, 2019, after the conclusion of the Disincorporation Period, the Parties shall submit, for approval by the Institute, the terms and conditions of the Trust's contract, including the identification of the potential trustee.
Likewise, as long as the ownership and all assets of Fox Sports Mexico are not contributed to the Trust, the Parties remain obliged to maintain and dispose of (sell) a viable, competitive, ongoing and independent business of the Parties, in terms of paragraphs 8.4.3 to 8.4.10 of the Resolution.
