Net purchases CATV rival ESC 90 Telecomunicacoes for USD58m

2 Sep 2008

Brazilian pay-TV and broadband internet provider Net Servicos is purchasing rival cableco ESC 90 Telecomunicacoes for BRL94.6 million (USD57.8 million), reports BNamericas citing a Net Servicos filing with securities regulator CVM. Under the deal, Net will acquire 100% of ESC 90 from its owner, the Brazilian power company Energias do Brasil (EDB). It is understood the agreement is subject to approval from the country’s telecoms regulator Anatel. ‘According to authorities, we have 15 days to provide documentation and information to the market but we are ready to incorporate the company and expect Anatel will soon authorise the deal,’ Net’s chief financial officer Joao Adalberto Elek Junior said during a conference call. The addition of ESC 90 will expand Net’s coverage to all state capitals in the south and southeast of the country, he said. The smaller pay-TV operator is active in Espirito Santo state capital Vitoria and the city of Vila Velha. It currently has around 31,000 basic TV customers and 24,000 broadband subscribers, with coverage of 106,000 homes over a network extension of 593km.