Vivo could stump up USD597m to buy Telemig shares

16 Jul 2008

Brazil’s leading mobile operator in terms of subscriber numbers, Vivo Participacoes, could pay up to BRL952.8 million (USD596.5 million), to acquire the voting shares of Telemig Celular and its operating arm, Bloomberg reports. In a statement, Vivo said it has offered to buy up all Telemig Celular Participacoes’ 6.2 million voting shares for BRL120.93 each, plus 96,229 Telemig Celular shares for BRL2,100.93 each. The offer is a mandatory condition of Vivo’s acquisition of Telemig, agreed in August 2007. At the time Vivo, controlled by Portugal Telecom and Telefonica, agreed to pay BRL1.2 billion for a controlling stake in Telemig and its operating unit. Local regulations require that Sao Paulo-based Vivo must extend the offer to minority shareholders.