Mexico’s Carlos Slim moves in for remaining Net shares

Brazilian telecoms group Embratel Participacoes, controlled by Mexican billionaire Carlos Slim through America Movil (AM), plans to buy out the minority shareholders of domestic cable TV and internet provider Net Servicos de Comunicacao. It is understood Embratel, which holds 92.2% of Net’s stock, is readying a plan to offer BRL26.64 (USD13.17) per share for each share it does not already own. No details have been given on when the tender offer will take place or on the exact value of the deal, although Embratel is reportedly looking to secure all of Net’s outstanding shares, including those listed in the US and Spain; if successful, Embratel would proceed to take Net private, withdrawing the shares from trading. Earlier this year, Embratel moved to acquire a controlling interest of GB Empreendimentos e Participacoes, the holding company that controls Net Servicos, after purchasing 5.5% of GB’s voting shares for BRL6.44 million from Globo Comunicacoes e Participacoes (Globopar). The deal formed part of an agreement signed by the two in 2005, under which Embratel agreed to purchase control of Net Servicos once Brazil changed its telecoms laws to allow foreign companies to own Brazilian cablecos. The law was amended to allow this in 2011