TIM Brasil to offer USD926m worth of new shares to replenish coffers

5 Oct 2011

Brazil’s second largest mobile operator by subscribers TIM Participacoes (TIM Brazil) is set to offer more than 200 million new shares priced at BRL8.68 each (USD4.60), or a total of BRL1.72 billion (USD926 million), Reuters reports citing a company security filing. The company, which is controlled by Telecom Italia, saw its share price sinking last month amid rumours of the share sale, but later rebounded after its Italian parent agreed to buy two-thirds of the offering. TIM Brasil will use the cash injection to replenish its accounts in the wake of its acquisition of broadband company AES Atimus for BRL1.6 billion in July. The deal adds much needed optical fibre to TIM’s Brazilian infrastructure as it looks to increase bandwidth in time for the football World Cup in 2014 and the 2016 Olympic Games.

Brazil, TIM Brasil