Brazilian America Movil (AM) subsidiaries Embratel and NET Servicos have announced that their respective boards of directors have approved the proposed corporate reorganisation plan which will see them formally merged with sister company Claro Brasil.
The exchange rate for shares, which will now be proposed to the shareholders themselves, will see 1,000 shares in Embratel Participacoes (Embrapar – Embratel’s holding company) swapped for 0.0308 shares of Claro. Meanwhile, one Embratel share will be worth 0.0031 Claro shares, and one NET share will be worth 0.0884 Claro shares.
If approved by company shareholders, the merger stands to conclude on 31 December this year. The combined entity will be controlled by AM’s Telmex Solutions holding company.