Brazil’s Embratel Plots Net Tender, Streamlining

Embratel has reached 92.2% of control of operator Net Servicios de Comunicacao, and plans to launch a tender for the remaining shares, delist them and prepare a reorganization of Embratel’s businesses in Brazil. Embrapar, the parent of the Carlos Slim-owned telecom, increased its stake in GB Empreendimentos e Participacoes, the company that controls Net, by 5.5% to a total of 54.5%, it says, to reach the 92.2% level. It plans to soon offer holders of all Net shares a maximum of BRL26.04 ($14.80) per share, adjustable for changes in the DI rate until the time of the offer. Should the price of the valuation of shares exceed the maximum price offered, Embrapar could choose to cancel the tender. Officials at Net and Embratel could not immediately be reached for additional comment as to how many shares Embratel targets and what it would cost. Following a delisting of Net, Embratel says it would examine a restructuring.