Vivo’s Telemig, Tele Norte deal could create synergies of around USD494m

7 Aug 2007

AFX News reports that Vivo Participacoes is expecting to realise synergies of up to BRL920 million (USD494 million) as a result of its recent acquisition of controlling stakes in Telemig Celular Participacoes and Tele Norte Celular Participacoes (Amazonia Celular). Vivo chief executive officer Roberto Lima said the takeover presented the opportunity to generate net operating synergies of BRL575 million within the company and fiscal synergies of up to BRL345 million. As reported in yesterday’s CommsUpdate, Vivo has agreed to purchase a 22.72% controlling stake in Telemig Celular and a 19.34% controlling stake in Tele Norte for a total consideration of BRL1.2 billion.