Brazilian UOL’s controlling shareholder wants to buy-out the minority shareholders and to delist the company. Folhapar will pay up to R$835m (US$537m) in a tender offer to acquire the outstanding stock.
Brazilian ISP UOL, which is currently listed at…
Brazilian UOL’s controlling shareholder wants to buy-out the minority shareholders and to delist the company. Folhapar will pay up to R$835m (US$537m) in a tender offer to acquire the outstanding stock.
Brazilian ISP UOL, which is currently listed at the Sao Paolo stock exchange, said Folhapar plans to make the tender offer for the 18,392,630 common shares and 30,727,018 preferred shares, which together represent over 40% of stock in UOL, currently hold by minority shareholders.
UOL said that the maximum price to be offered would be R$17 (US$10.9) per share.
The maximum total for the whole offer would therefore be over R$835m (US$537m).
UOL did not give a date for the tender offer, which still has to be approved by Brazil’s Securities and Exchange Commission (CVM).
According to the Sao Paolo Exchange, Folhapar currently holds 70.19% of UOL’s ordinary shares and 49.33% of its preferred shares, making a total stake of 59.83%.
The next largest shareholders are Acionistas Queiroz (25.51% total stake), Banco Fator (4.4%) and Cyrte Investments (2.76%).
A UOL spokesman told TelecomFinance that the minority shareholders would be convened for the contracting of a company to undertake a valuation report of the capital stock of UOL.
The three candidates to make this valuation are Banco Bradesco, Morgan Stanley and Rothschild.
UOL has not yet decided which legal adviser it will use for the transaction.
