ATLANTA, United States—BellSouth signed an agreement to sell its stake in Brazilian cellular provider BSE, also known as BCP Nordeste, to América Móvil subsidiary Telecom Américas for an undisclosed amount. The sale is expected to close during the second quarter.
BellSouth and its Safra Group partner have been reported to have been in talks regarding the BSE sale since January. BellSouth said it will continue to focus its Latin America efforts in its 10 remaining markets.
BellSouth’s interest in BCP Telecomunicacoes, which operates in São Paulo, Brazil, is not included in the BSE transaction, which is expected to close in the second quarter.
The acquisition firmly establishes Telecom Américas in the second position in the Brazilian cellular telephony market, behind BrasilCel, the joint venture combining Telefónica Celular’s and Portugal Telecom’s 16.8 million subscribers. Mexico-based Telecom Américas, which owns several band B operators in Brazil, acquired at the end of last year new band D and E licenses in the states of Paraná, Santa Catarina, Bahia, Sergipe and the metropolitan area of São Paulo.
The group had 4.8 million subscribers as of end-September 2002. With BSE, however, Telecom Américas jumps into second place in the Brazilian market, increasing its base by more than 1 million subscribers.
BSE in the third quarter of 2002 had US$1.55 billion in long-term debt. The operator registered short-term debt of US$58.7 million that expires this year.
For more on consolidation in Brazil, see Consolidation time looms in Brazil.
