CANTV nationalisation update

30 Mar 2007

Shares in Venezuelan incumbent CANTV will go on offer beginning 9 April on the Caracas and New York stock exchanges, when the Venezuelan government plans to acquire a total of around 70% of the telco’s stock, the country’s Telecommunications Minister Jesse Chacon told a news conference yesterday. President Hugo Chávez has ordered the nationalisation of the fixed line operator, which also owns nationwide cellco Movilnet. The government agreed last month to purchase a 28.5% stake in the firm from its largest shareholder, US-based Verizon Communications, for USD572 million. Under the deal the state agreed to pay Verizon USD17.85 per CANTV American Depository Receipt traded on the New York Stock Exchange and to purchase remaining shares from other stockholders at the same price. The state already held a 6.6% stake in CANTV, whilst other shareholders include Spain’s Telefónica with 6.9%. The company is estimated to have around 43,000 individual shareholders.

Venezuela, CANTV