Vivo Makes Offer for Minority Telemig Shares

Brazilian wireless operator Vivo has offered to buy all outstanding 6.2m voting shares of Telemig Celular for BRL120.93 each, it said. It also offered to buy all 96,229 shares of Telemig’s operating unit for BRL2,100 each. As a part of Vivo’s BRL1.2bn acquisition of Telemig agreed in August 2007, it must make the two offers to minority shareholders. If the total amount is accepted, it will cost the wireless operator jointly owned by Telefonica and Portugal Telecom BRL953m. In May, its board approved a BRL990m capital increase to provide funds for the tag-along offers. Vivo will acquire the shares in auctions August 15 at the Sao Paulo stock exchange. Banco Espirito Santo Securities is managing the transaction.