Embratel, Brazil’s second largest fixed-line operator, has briefed the Brazilian stock market regulator, CVM, that it will offer US$13.11 for each ADS of local cable TV operator Net Serviços de Comunicaçao.
Embratel, controlled by Mexican media tycoon…
Embratel, Brazil’s second largest fixed-line operator, has briefed the Brazilian stock market regulator, CVM, that it will offer US$13.11 for each ADS of local cable TV operator Net Serviços de Comunicaçao.
Embratel, controlled by Mexican media tycoon Carlos Slim, who holds 98.1% of Embratel Participaçoes through his operating company Telmex Internacional, has been trying to buy all the preferred shares in Net Serviços and had offered Br23 per share. If all shares are acquired, Embratel will disburse some Br4.5bn (US$2.6bn). This would be a 23.1% premium over the average closing price in trading sessions between July 4 and August 4, the date the original tender was made.
Currently, Embratel Participaçoes owns 5.4% of Net’s preferred shares, while Embratel has 7.5%.
The company has now extended its offer to Net Serviços ADS holders. The offer will run until September 28.
Embratel had to postpone its preferred share offer from September 9 to September 29 after CVM asked for more details on the future operations of Net Serviços, post-acquisition.
Representatives of Embratel were not available for comment by press time.
