Govn't pays Verizon USD 572.2 million for stake in Cantv
EDUARDO CAMEL ANDERSON, EL UNIVERSAL
The Venezuelan government is also launching two takeover bids intended to purchase both Class D shares and American Depositary Shares (ADS)
Venezuelan government officials and US Verizon Corp late Monday initialed a memorandum of understanding under which the Venezuelan State is purchasing 28.51 percent of telecoms firm Cantv, currently in the hands of the multinational.
The sale price was USD 572.2 million, according to Minister of Telecommunications Jesse Chacón, who attended the ceremony together with Venezuelan Executive Vice-President Jorge Rodríguez.
The sum amounts to USD 17.85 per each American Depositary Shares (ADS) purchased under the transaction, which represent 224,410,604 shares.
Further, the Venezuelan State is launching two takeover bids. One will be filed with the Venezuelan Securities Commission (CNV) and intended to buy class D shares from stockholders willing to sell their stocks.
The second bid will be filed with the US Securities and Exchange Commission (SEC), and is aimed at luring investors holding Cantv American Depositary Shares.
The Venezuelan government called upon the two kinds of investors to carefully consider the bid that will be posted both at SEC and CNV soon.
For Verizon, Executive Vice-President John W. Diercksen initialed the memorandum of understanding. He offered a brief statement to say he appreciated "the government's intent to pay a fair price to investors."
Meanwhile, Chacón hinted that under the new management, Cantv is aiming at USD 300 million joint projects with power supplier Cadafe and CVG Telecom intended to expand the fiber optic network in Venezuela.
"We have achieved a fair price, even higher than the latest offer made recently to take over the majority stake in the company," the official added.
Chacón rejected claims that "state-owned corporations are inefficient," and stressed that Cantv fees will now on involve a "social sense" focused "on service rather than profits."
Additionally, Rodríguez claimed that recently Cantv officials "dared to meddle with the country's political affairs; they dared to plot."
Ending the third quarter of 2006, Cantv's number of land line subscribers soared 11.3 percent to 3.7 million customers, while mobile phone users jumped 68.9 percent to 6.8 million customers.
In the first nine months of 2006, Cantv capital investment amounted to USD 333,675,086.
Consolidated operational revenues were USD 811,352,409, 35.5 percent higher than the same period in 2005.
Revenues from mobile services skyrocketed 65.2 percent versus the first nine months of 2005, and exceeded USD 381,209,805.
Translated by Maryflor Suárez R.
msuarez@eluniversal.com
The Venezuelan government is also launching two takeover bids intended to purchase both Class D shares and American Depositary Shares (ADS)
Venezuelan government officials and US Verizon Corp late Monday initialed a memorandum of understanding under which the Venezuelan State is purchasing 28.51 percent of telecoms firm Cantv, currently in the hands of the multinational.
The sale price was USD 572.2 million, according to Minister of Telecommunications Jesse Chacón, who attended the ceremony together with Venezuelan Executive Vice-President Jorge Rodríguez.
The sum amounts to USD 17.85 per each American Depositary Shares (ADS) purchased under the transaction, which represent 224,410,604 shares.
Further, the Venezuelan State is launching two takeover bids. One will be filed with the Venezuelan Securities Commission (CNV) and intended to buy class D shares from stockholders willing to sell their stocks.
The second bid will be filed with the US Securities and Exchange Commission (SEC), and is aimed at luring investors holding Cantv American Depositary Shares.
The Venezuelan government called upon the two kinds of investors to carefully consider the bid that will be posted both at SEC and CNV soon.
For Verizon, Executive Vice-President John W. Diercksen initialed the memorandum of understanding. He offered a brief statement to say he appreciated "the government's intent to pay a fair price to investors."
Meanwhile, Chacón hinted that under the new management, Cantv is aiming at USD 300 million joint projects with power supplier Cadafe and CVG Telecom intended to expand the fiber optic network in Venezuela.
"We have achieved a fair price, even higher than the latest offer made recently to take over the majority stake in the company," the official added.
Chacón rejected claims that "state-owned corporations are inefficient," and stressed that Cantv fees will now on involve a "social sense" focused "on service rather than profits."
Additionally, Rodríguez claimed that recently Cantv officials "dared to meddle with the country's political affairs; they dared to plot."
Ending the third quarter of 2006, Cantv's number of land line subscribers soared 11.3 percent to 3.7 million customers, while mobile phone users jumped 68.9 percent to 6.8 million customers.
In the first nine months of 2006, Cantv capital investment amounted to USD 333,675,086.
Consolidated operational revenues were USD 811,352,409, 35.5 percent higher than the same period in 2005.
Revenues from mobile services skyrocketed 65.2 percent versus the first nine months of 2005, and exceeded USD 381,209,805.
Translated by Maryflor Suárez R.
msuarez@eluniversal.com
posted by Alice at
Wednesday, February 14, 2007
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