Spanish incumbent Telefonica has confirmed its intention to acquire the Brazilian cable TV companies Comercial Cabo TV Sao Paolo and TVA Sul Parana.
In a statement to the Sao Paolo stock exchange, Telefonica said that it informed GTR Participacoes of…
Spanish incumbent Telefonica has confirmed its intention to acquire the Brazilian cable TV companies Comercial Cabo TV Sao Paolo and TVA Sul Parana.
In a statement to the Sao Paolo stock exchange, Telefonica said that it informed GTR Participacoes of its intention to exercise an option to acquire ordinary shares in Lemontree Participacoes and GTR-T Participacoes e Empreendimentos.
If the deal is completed, Telefonica will hold a 100% stake in both companies and will thereby become the controller of Comercial Cabo TV Sao Paolo and TVA Sul Parana.
According to local media, these two units make up the cable TV company TVA.
The deal is still subject to approval by the Brazilian telecoms regulator, Anatel.
At present, Telefonica holds a 19.9% stake in TVA. The rest of the company is owned by Lemontree Participacoes.
In September, Telefonica acquired a 49% stake in Lemontree. The rest is held by the Brazilian media conglomerate Grupo Abril.
Telefonica had a 2006 agreement with Abril, which gave the Spanish incumbent the option to acquire Abril’s stake, if the move was agreed by both parties.
Telefonica’s acquisition plan is the latest in a series of moves by foreign companies to acquire increased stakes in Brazilian cable TV companies.
Last week, America Movil’s subsidiary Embratel announced it applied to the telecoms regulator to acquire indirect control of another cable TV company, Net Servicos.
Earlier in the year, the Brazilian government approved new rules allowing foreign companies to acquire 100% of a Brazilian cable TV operator. Previously, foreigners had been restricted to a 49% shareholding.
