Brazil’s leading mobile operator by subscribers, Vivo Participacoes, has agreed a BRL1.2 billion (USD639 million) stock purchase agreement with Telpart Participacoes to acquire controlling stakes in regional wireless rivals Telemig Celular and Tele Norte Celular Participacoes (Amazonia Celular). Vivo, a joint venture between Portugal Telecom and Telefonica, is initially looking to buy 22.72% of Telemig and 19.34% of Amazonia Celular. It will also make subsequent offers to purchase outstanding shares in the two cellcos if its offer is accepted, the Portuguese telco said in a regulatory filing. Assuming full acceptance in all offers, Vivo will acquire a beneficial interest of 58.2% in Telemig Celular and 54.6% in Amazonia Celular, for an aggregate consideration of around BRL2.9 billion (including the value of the subscription rights). The deal will boost Vivo’s total subscriber base by 4.8 million users to around 35 million, or 33% of the Brazilian total market. The takeover will give Vivo a much stronger presence in Minas Gerais, the country’s second-richest state, and the northern states of Amapa, Roraima, Amazonas, Para and Maranhao. Telemig controls 3.54 million customers in Minas Gerais, while Amazonia Celular has 1.29 million accounts in the Amazon region.
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