Algar Telecom to incorporate CTBC subsidiaries

5 Apr 2013

Brazilian telecoms operator Algar Telecom has approved the formal merger of two of its subsidiaries CTBC Celular and CTBC Multimedia Data Net – neither of which is currently owned directly by the company. Algar first made known its intention to incorporate the two units in February this year, saying the plan will be based on a valuation provided by Apsis Consultoria; the proposed rate of exchange is 1.9150 CTBC Telecom shares for every CTBC Multimedia share and 1.1709 CTBC Telecom shares for every CTBC Celular share. Based on Apsis Consultoria’s estimate, CTBC Celular is valued at BRL180.91 million (USD88.8 million) and CTBC Multimedia Data Net at BRL392.89 million. The formal approval of the plan will take place at a CTBC Telecom general meeting, due for 19 June.

Brazil, Algar Telecom, Algar Telecom (formerly CTBC [Fixa])