SAO PAULO-Brasilcel, the company jointly owned by Telefonica Moviles and Portugal Telecom, has launched a plan to buy additional stakes in the other Brazilian subsidiaries partially owned by the two European telecom companies in a $508 million deal. Brasilcel intends to launch voluntary public tender offers in cash to buy shares in TeleSudeste Celular Participacoes, Tele Leste Celular Participacoes, and Celular CRT Participacoes to boost their stakes in the carriers.
In addition, Telesp Celular Participacoes, another Telefonica and Portugal Telecom Brazilian wireless subsidiary, will acquire up to 84.2 billion preferred shares of Tele Centro Oeste Celular under the deal.
Brasilcel is a holding company for the Vivo wireless service brand in Brazil.
Brasilcel and Telesp are offering premiums of 20 percent over the weighted average closing price of each of the subsidiaries’ shares during the last 30 trading days on the Sao Paulo Stock Exchange.
The offers will begin in the first week of September and run for 30 days.
The acquisitions are part of Telefonica’s and Portugal Telecom’s strong pushes in Latin America and the lucrative Brazilian market specifically. Telefonica is on track to complete its acquisition of BellSouth Corp.’s Latin American assets by year-end.
