ANNUAL INTEGRATED REPORT 2021 slide image

ANNUAL INTEGRATED REPORT 2021

ANNUAL INTEGRATED REPORT 2021 | AXTEL = As of December 31, 2021, 2020 and 2019, the main subsidiary companies of Axtel were as follows: Axtel, S. A. B. de C. V. (Holding company) (2) Servicios Axtel, S. A. de C. V. (3) Alestra Innovacion Digital, S. de R. L. de C. V. (2) Axes Data, S. A. de C. V. (3) Stockholding interest (%) Country 2021 2020 2019 Mexico Mexico Mexico 100 Mexico Contacto IP, S. A. de C. V. (3) Mexico Instalaciones y Contrataciones, S. A. de C. V. (3) Ingeniería de Soluciones Alestra, S. A. de C. V. (3) Alestra USA, Inc. (1) Mexico Mexico 100 100 Functional currency Mexican peso 100 100 Mexican peso 100 100 Mexican peso 100 100 Mexican peso 100 100 Mexican peso 100 100 Mexican peso Mexican peso USA 100 100 100 U.S. dollar Mexico 100 100 100 Mexican peso Mexico 100 100 100 Mexican peso Mexico 100 100 100 Mexican peso Mexico 100 100 100 Mexico 100 100 100 Mexico 100 100 Mexico 100 100 Mexico 100 100 Mexico 100 100 Mexico 100 100 Mexico 100 100 100 100 Mexican Peso Mexican Peso Mexican Peso Mexican Peso Mexican Peso Mexican Peso Mexican Peso Mexican Peso S&C Constructores de Sistemas, S. A. de C. V. ("S&C") Estrategias en Tecnología Corporativa, S. A. de C. V. ("Estratel") (2) Servicios Alestra TI, S. A. de C. V. (2) Alestra Procesamiento de Pagos, S. A. de C. V. (2) (3) La Nave del Recuerdo, S. A. de C. V. Contacto IP FTTH de México, S. A. de C. V. Alestra Servicios Móviles, S. A. de C. V. (2) Fomento de Educación Tecnológica, S.C. (4) Axtel Networks, S. A. de C. V. Servicios Axtel Networks, S. A. de C. V. AXE Redes e Infraestructura S. A. de C. V. Leasing of telecommunications and infrastructure equipment. (2) Provider of telecommunication services. (3) At the General Extraordinary Stockholders' Meeting held on December 1, 2021, the stockholders agreed to merge Servicios Axtel, S. A. de C. V., Axes Data, S. A. de C.V., Contacto IP, S. A. de C.V., Instalaciones y Contrataciones, S.A de C. V., and Ingeniería de Soluciones Alestra, S. A. de C. V. (as merged companies) with Alestra Procesamiento de Pagos S.A. de C. V. (as merging company); this merger has no impact on the Company's operations at the consolidated level. (4) Training and development services As of December 31, 2021, 2020 and 2019, there are no significant restrictions for the investment in shares of the subsidiary companies mentioned above. iv. Absorption (dilution) of control in subsidiaries The effect of absorption (dilution) of control in subsidiaries, that is, an increase or decrease in the percentage of control, is recorded in stockholders' equity, directly in retained earnings, in the period in which the transactions that cause such effects occur. The effect of absorption (dilution) of control is determined by comparing the book value of the investment in shares before the event of dilution or absorption against the book value after the relevant event. In the case of loss of control, the dilution effect is recognized in income. When the Company issues a call option on certain non-controlling interests in a consolidated subsidiary and the non-controlling stockholders retain the risks and benefits over such interests in the consolidated subsidiary, these are recognized as financial liabilities at the present value of the amount to be reimbursed from the options, initially recorded with the corresponding reduction in equity and subsequently accruing through financial charges in results during the contractual period. v. Sale or disposal of subsidiaries When the Company ceases to have control, any retained interest in the entity is remeasured at fair value, and the change in the carrying amount is recognized in the consolidated statement of income. The fair value is the initial carrying amount for accounting purposes for any subsequent retained interest in the associate, joint venture or financial asset. Any amount previously recognized in comprehensive (loss) income in respect of that entity is accounted 20 120
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