Brazil's internet provider UOL shares up on deals

Wall Street Journal | December 30, 2010 | Rogerio Jelmayer
SAO PAULO (Dow Jones)–Shares of Universo Online SA (UOLL4.BR), or UOL, Brazil’s largest Internet provider by revenue, were up during Thursday’s morning session on two deals concerning the company.
As of 1303 GMT, the company’s share was up 1.41% at 12.97 Brazilian reais ($7.67) on the Sao Paulo Stock Exchange, the BMFBovespa, outperforming the local main stock index, the Ibovespa, which was up 0.09%.
Late Wednesday, UOL said it completed completed the acquisition of U.S.-based Diveo Broadband Networks for around BRL693.5 million.
UOL said that it will merge Diveo’s operations with its subsidiary DH&C Outsourcing S.A.
“The amount paid to the (Diveo) shareholders was BRL693.5 million, and an additional amount of BRL19.4 million was deposited in an escrow account for future adjustments,” UOL said. “This merger will increase DH&C’s customer base and will enhance its scale and synergy, reinforcing DH&C’s notable position in the Brazilian datacenter and outsourcing market,” it added.
In the meantime, Portugal Telecom SGPS SA (PTC.LB) has sold its 28.78% stake in UOL. The company, however, didn’t disclose the financial terms of the sale.
Local newspaper Folha de S. Paulo earlier reported that Portugal Telecom had sold the stake for around BRL350 million, citing an unnamed person close to the deal.
Portugal Telecom’s stake in UOL was acquired by Brazilian businessman Joao Alves de Queiroz Filho, the largest individual shareholder in consumer conglomerate Hypermarcas SA (HYPE3.BR), according to the report.
UOL is controlled by Folhapar, a holding company that controls Brazil’s largest newspaper, Folha de S. Paulo.
The sale comes a few months after Portugal Telecom announced the acquisition of a minority stake in Brazilian telecommunications group Tele Norte Leste Participacoes S/A (TNLP4.BR), or Oi, for BRL8.4 billion.
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