Brazilian operator Embratel, a subsidiary of America Movil, will offer R$26.64 (US$12.89) per share to acquire the remaining stock it does not already own in cableco Net Servicos de Comunicacao, according to an SEC filing.
Embratel, and parent…
Brazilian operator Embratel, a subsidiary of America Movil, will offer R$26.64 (US$12.89) per share to acquire the remaining stock it does not already own in cableco Net Servicos de Comunicacao, according to an SEC filing.
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.
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 confirmed the offer price applied to all the shares, regardless of the class or type, meaning it applies to American Depositary Shares (ADSs) and shares on LATIBEX, the Spain-based exchange for Latin American securities.
It said its offer was 28% higher than the average weighted volume in the 60 days prior to the day it announced its intention to purchase the shares, and 112% higher than the book value of the shares on 31 March.
Embrapar will launch the offer jointly with its subsidiaries Empresa Brasileira de Telecomunicacoes S.A. – Embratel, and GB Empreendimentos e Participacoes S.A.
Embratel plans to delist Net from the BM&F BOVESPA stock exchange in Sao Paolo and to cancel its registration with the Brazilian Securities and Exchange Commission (CVM).
