Brazil’s leading mobile operator by subscribers Vivo Participacoes has filed a request to the national telecoms regulator Anatel, seeking prior approval to incorporate domestic cellco Telemig Celular. At an extraordinary general meeting held on 13 November 2009, Vivo approved the incorporation of Telemig Celular Participacoes, the holding company for the mobile operator itself, and is now looking for formal ratification of its plan to incorporate the smaller company.
Vivo first revealed its plan to incorporate Telemig Celular and then delist its shares in March this year. In a statement given at the time, Vivo said the proposal would be presented for shareholder approval and that the restructuring should be completed in H2 2009. ‘This corporate restructuring aims to simplify the current organisational structure of Vivo and its subsidiaries, reducing the number of companies listed on the Sao Paulo Stock Exchange and on the New York Stock Exchange, thus reducing the costs associated with their market listing,’ the statement read.