Vivo to Reinforce its Leadership With the Acquisition of Telemig Participacoes and Tele Norte Participacoes
August 03 2007 - 2:07PM
PR Newswire (US)
- Vivo consolidates its leadership by adding 4.8 million
subscribers and reaching 35 million subscribers SAO PAULO, Brazil,
Aug. 2 /PRNewswire-FirstCall/ -- Vivo Participacoes (NYSE:VIV)
(Bovespa: VIVO4.BR) ("Vivo") announces that it has signed on this
date a stock purchase agreement with Telpart Participacoes S.A.
("Telpart") to acquire control of Telemig Celular Participacoes
S.A. ("Telemig Participacoes") and Tele Norte Celular Participacoes
S.A. ("Tele Norte Participacoes") comprised of 22.72% and 19.34% of
total capital, respectively, for an aggregate amount of R$ 1,2
billion, subject to certain price adjustments. In addition, Vivo
will acquire from Telpart certain subscription rights for R$ 87
million. The conclusion of the transaction is subject to Anatel
approval and ratification by general shareholders meetings of Vivo
and Telpart, among other customary closing conditions. Upon closing
of the transaction, in accordance to Brazilian Law, Vivo will
launch mandatory tender offers for the acquisition of common shares
held by non-controlling shareholders at 80% of the price paid for
the controlling stake. The mandatory tender offers will be extended
to Telemig Participacoes, Telemig Celular, Tele Norte Participacoes
and Amazonia Celular. Additionally, Vivo intends to launch
voluntary tender offers for up to 1/3 of all classes of preferred
shares held by the non-controlling shareholders in the holding and
operating companies, at a 25% premium to the weighted average price
of the last 30 trading days until August 01, 2007. Assuming full
acceptance in all offers, Vivo will have acquired a beneficial
interest of 58.2% in Telemig Celular and 54.6% in Amazonia Celular,
for an aggregate consideration of circa R$ 2,9 billion (including
the value of the subscription rights). With this transaction Vivo
adds two attractive assets to its portfolio reaffirming its
leadership in the wireless market with 35 million subscribers and a
33% national market share: -- Telemig Celular, the leading wireless
operator in the Minas Gerais region, with 3.5 million subscribers
and a 31% market share. For the last twelve months ending on March,
31st 2007, net revenues amounted to R$ 1,232 million, with an
EBITDA of R$ 383.3 million. In the first quarter of 2007, Telemig
Celular achieved a 38.2% margin, being one of the most profitable
operators in Brazil. -- Amazonia Celular, the third wireless
operator in the Amazonia region with 1.3 million subscribers and a
22% market share. For the last twelve months ending on March, 31st,
2007 net revenues amounted to R$ 454 million, with an EBITDA of R$
46.3 million and reaching a 24.3% margin in the first quarter of
2007. Vivo will be hosting an Investor conference call at 9:00am
(Brasilia time) on August 3rd, 2007. Further information about the
transaction, is available at Vivo's Investor Relations website
(http://www.vivo.com.br/ir). DATASOURCE: VIVO Participacoes S.A.
CONTACT: Investor Relations of VIVO Participacoes S.A., Web site:
http://www.vivo.com.br/ir
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