Embratel increases Net stake to 92.27%

25 Jan 2011

Brazilian fixed line operator Embratel Participacoes has increased its preferred stock holding in local cable operator Net Servicos to 92.27%. According to documents filed with the Securities Commission, Embratel acquired through a voluntary offer 49,847,863 preferred shares of Net Servicos, representing 21.81% of preferred shares of the company, as per a rights option which ran from 13 October 2010 until 13 January 2011. With the purchase, Embratel will hold 92.27% of all preferred shares of Net, and Embrapar owns, along with its subsidiary Embratel, 97.63% of the group’s preferred shares. The purchase forms part of a major restructuring of Net’s equity being undertaken by America Movil as it looks to consolidate companies in Brazil.