Carlos Slim-owned Brazilian telco Embratel has decided not to proceed with its delisting of its cable television subsidiary Net Servicos de Comunicacao after minority shareholders refused the offer price, according to SEC filings.
The move comes after…
Carlos Slim-owned Brazilian telco Embratel has decided not to proceed with its delisting of its cable television subsidiary Net Servicos de Comunicacao after minority shareholders refused the offer price, according to SEC filings.
The move comes after minority shareholders in Net asked to convene a meeting to renegotiate the stock price at the end of June.
Embratel said in early June that Banco BTG Pactual was brought in to appraise the value of the shares and suggested in a report that a fair offer would be between R$25.89 (US$12.72) and R$28.34 (US$13.92) per share – Embratel offered R$26.64 (US$12.89) per share.
In March, when it first revealed its intention to buy out minority shareholders, Embratel said that the maximum price it would pay for outstanding shares would be R$26.04 (US$14.80) per share.
Embratel, and parent Embrapar, currently hold a 92.2% direct and indirect stake in the cable company. Embratel announced its intention to buy all outstanding Net shares in early March, following the acquisition of the company in early 2012.
