Telpart approves sale of Telemig, Amazônia

23 Aug 2007

Telpart Participações, the holding group that controls Brazilian mobile operators Telemig Celular Participações (Telemig) and Tele Norte Celular Participações (Amazônia Celular), says its shareholders have formally approved the sale of the two companies to the country’s largest mobile operator Vivo. BNamerica, citing local newspaper Valor Econômico, says Telpart shareholders approved the deal during an extraordinary shareholders’ meeting, despite opposition from TPSA do Brasil, which is linked to Banco Opportunity and holds 48.9% of ordinary shares in Telpart. The holding group is controlled by Newtel, whose majority shareholders are US investment bank Citigroup and several local pension funds that combined own 51.07%. Bnamericas reports that Newtel shareholders supported the sale, while TPSA criticised the transparency of the process in which the sale was conducted, despite being broadly in favour of the deal. TPSA also alleges the transaction was contrary to the earlier stated aim to achieve the highest return on the investment, the newspaper said.

On 6 August Vivo Participacoes, agreed a BRL1.2 billion (USD639 million) stock purchase agreement with Telpart Participacoes to acquire controlling stakes in Telemig and Amazonia Celular. Vivo, a joint venture between Portugal Telecom and Telefonica, is initially looking to buy 22.72% of Telemig and 19.34% of Amazonia Celular. It will also make subsequent offers to purchase outstanding shares in the two cellcos if its offer is accepted, the Portuguese telco said in a regulatory filing.