Telemar announces restructuring plans

18 Apr 2006

Brazilian telco Telemar has announced plans to simplify its operating units through a restructuring exercise. Under the proposal, Telemar Participacoes, Tele Norte Leste Participacoes (Tmar) and Telemar Norte Leste (TNL) would be brought together under a single umbrella company. TNL would initially be incorporated into Telemar and its preferred stock converted into ordinary shares with unconverted stock to be redeemed, according to BNamericas citing local newspaper Estado de So Paulo. Telemar says it needs to overhaul its business to increase value, improve its management and stimulate growth. The reorganisation has been agreed by the operator’s primary shareholders, GP Investimentos, group La Fonte, Andrade Gutierrez and Brazil’s national development bank BNDES. Telemar operates in 16 of 27 Brazilian states, with 15 million fixed lines and eleven million mobile phone users.

Brazil, Oi