Brazilian telecoms operator Embratel has revealed its intention to acquire all the shares in cable TV operator Net Servicos de Comunicacao that it does not already own. It is also considering a corporate reorganisation of its subsidiaries.
Embratel and…
Brazilian telecoms operator Embratel has revealed its intention to acquire all the shares in cable TV operator Net Servicos de Comunicacao that it does not already own. It is also considering a corporate reorganisation of its subsidiaries.
Embratel and its parent company, Embratel Participacoes (Embrapar), currently hold a 92.2% direct and indirect stake in the cable company. The Brazilian telecoms regulator approved Embratel’s acquisition of a controlling stake in Net in January.
The America Movil subsidiary said, in a filing with the US SEC, that it was planning to launch a tender offer to acquire all outstanding common and preferred shares in Net.
These include American Depositary Shares (ADSs) and shares on LATIBEX, the Spain-based exchange for Latin American securities.
Embratel also 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).
Embratel said that the maximum price it would pay for outstanding shares would be R$26.04 (US$14.80) per share.
If the value of the shares is judged to be above the R$26.04 price tag, then Embratel has the right to cancel the deregistration and delisting of Net, and would only go forward with the tender offer.
The company also said that it would examine the possibility of implementing a corporate reorganisation of some of its subsidiaries, including Net, so that it could “take advantage of synergies and other strategic benefits”.
