Brazil's Vivo Announces Public Tender Offer for Telemig Shares
SAO PAULO -(Dow Jones)- Brazil's largest cellphone operator, Vivo Participacoes, announced Tuesday details of its public tender offer to acquire outstanding shares of local operator Telemig Celular.
Vivo, jointly controlled by Spain's Telefonica and Portugal Telecom, is offering to pay 63.90 Brazilian reals ($37.58) for each outstanding share of Telemig Participacoes and BRL654.72 for each Telemig Celular share.
The public tender auction will take place on May 12.
The company said the price was calculated to include a 25% premium over the average trading price during the 30 trading sessions before the acquisition announcement in August 2007.
Vivo is planning to delist Telemig shares.
In August, Vivo acquired control of Telemig and last week Vivo announced that it completed the acquisition for EUR429 million.
The Telemig acquisition will allow Vivo to extend its coverage to the key Brazilian state of Minas Gerais, where Telemig last year had approximately 3.5 million clients.
-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3145-1480; rogerio.jelmayer@dowjones.com
(END) Dow Jones Newswires
Posted to the site on 8th April 2008
