Embratel completes Net Servicos share tender

29 Nov 2013

Brazilian telco Empresa Brasileira de Telecomunicacoes (Embratel) and its holding company Embratel Participacoes (Embrapar) announced in a press release that they have completed the tender offer launched last month for all of the outstanding common and preferred shares of sister cableco Net Servicos de Comunicacao (Net), including preferred shares represented by American Depository Shares, which they did not already own. The share offer/purchase from Embratel – which is 72.3% owned by Mexican giant America Movil’s Telmex Internacional unit – was completed on 27 November 2013, resulting in Embratel and Embrapar’s combined ownership of the outstanding common shares and preferred shares, held directly or through their subsidiaries, increasing to 90.21% and 99.14%, respectively. The release says that a total of 10,219,622 common shares, equivalent to 93.48% of the outstanding common shares, other than those held by Embratel/Embrapar or their affiliates, were validly tendered into the offer and a total of 3,456,310 preferred shares, equivalent to 63.73% of the outstanding preferred shares, other than those held by Embratel/Embrapar/affiliates, were tendered. Final settlement date is expected to be 2 December 2013.

Telmex Internacional, which has operations in Brazil, Chile and Ecuador, has consolidated Net Servicos’ results since Q1 2012 after Embratel took overall control of the cableco. Ultimate parent America Movil is looking to merge its fixed and mobile telecoms and cable TV operations in Brazil, and in April 2013 it announced plans to amalgamate Embratel, Claro-branded mobile unit Telecom Americas and Net Servicos, in a bid to reduce overall operational costs.

Brazil, Claro Brasil (incl. Embratel & NET Servicos)