Brazil Telecom TIM To Acquire Intelig
April 17 2009 - 7:02AM
Dow Jones News
Brazilian mobile-phone company TIM Participacoes SA (TSU) signed
an accord to buy the control of local long-distance operator
Intelig, the company said late Thursday in a statement.
TIM, which is a subsidiary of Telecom Italia S.p.A. (TI), said
that it will pay the acquisition with its shares and it will
increase its capital.
Intelig's controllers will receive up to 6.15% of TIM
Partcipacoes' preferred shares and others 6.15% of the company's
common shares.
"Intelig is undergoing a process of corporate and financial
restructuring, particularly involving a composition with its main
creditor banks in order to complete the settlement of its
liabilities, as well as the capitalization of the credits
previously held by its former controlling holders, which is a
condition precedent for the implementation of the transaction," TIM
said.
After the conclusion of operation, Intelig's controller JVCO
Partcipacoes will name a member to TIM's board.
"The transaction seeks to optimize the operational and support
areas of TIM and Intelig, resulting in a more rational deployment
of the resources available, a cost reduction, productivity gain,
combination of commercial efforts and efficient use of synergies
between the companies," TIM said.
The operation also must be approved by the Brazilian Antitrust
System Administrative, or SBDC and local telecom watchdog
Anatel.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521;
rogerio.jelmayer@dowjones.com