In a filing with the country’s Securities and Exchange Commission (CVM), Brazilian cableco Net Servicos has confirmed board approval for the execution of a private instrument of advance for future capital increase (AFAC), involving fellow America Movil (AM) owned companies Claro Brasil, Embratel Participacoss (Embrapar) and Embratel. Local paper Teletime reports that as a result of the AFAC decision, agreed at a board meeting held on 30 April, the group hopes to gain ‘additional financial resources to continue the implementation of its investment plan and reduce its current debt.’ Teletime notes that the capital increase amounts to BRL680 million (USD308.3 million) and will be carried out with Claro acting as an investor and Embrapar and Embratel as controlling shareholders.
Earlier this year Net Servicos revealed plans to increase its network coverage footprint from 19.8 million households passed at the end of 2013 to 21 million households by end-2014, encompassing its broadband internet, pay-TV and fixed telephony services delivered over technologies including HFC cable and fibre-to-the-home (FTTH). The expansion will involve establishing a network presence in seven additional cities. Net Servicos has also begun the process of adopting the ‘Claro’ branding of the AM group, already used by its sister telecoms operations in Brazil, for its pay-TV services.