Embratel, a subsidiary of America Movil, has applied to the Brazilian telecoms regulator to take indirect control of cable TV operator Net Servicos.
In a statement to the Sao Paolo stock exchange, Embratel’s subsidiary Embratel Participacoes…
Embratel, a subsidiary of America Movil, has applied to the Brazilian telecoms regulator to take indirect control of cable TV operator Net Servicos.
In a statement to the Sao Paolo stock exchange, Embratel’s subsidiary Embratel Participacoes (Embrapar) said that it had approached the regulator Anatel to acquire shares in Globo Comunicacao e Participacoes, which through a subsidiary holds a majority voting stake in Net.
Embratel said that Globo’s subsidiary, GB Empreendimentos e Participacoes, is currently the parent company of Net and holds a 51% voting stake in the cable TV operator.
Embratel said that it had applied to acquire enough ordinary GB shares to be assured of a majority voting stake in the company.
After completion Embratel will directly control GB and indirectly control Net.
In its statement, Embratel said that Net has a 41.5% share of the Brazilian cable TV market and 25.4% share of the broadband market.
According to Net’s website, GB currently holds a total economic stake of 17% in Net.
Embratel currently holds a 62.2% total stake in Net, while its subsidiary Embrapar holds 15.5%.
The news comes after the Brazilian government decided earlier in the year to approve a new law allowing foreign businesses to acquire 100% of Brazilian cable TV operators.
TelecomFinance reported last month that Spanish incumbent Telefonica was studying the possibility of acquiring the stake in Brazilian cable TV operator TVA that it does not already own. It currently holds a 19.9% stake in TVA.
