Portugal Telecom and Telefónica mobile merger in Brazil concluded March 2006

5 December 2005

Lisbon, Portugal, 05 Dec – The merger of the mobile telecommunications operators controlled by Portugal Telecom (PT) and Spain’s Telefonica Móviles in Brazil should be concluded in March, a PT spokesperson told Portuguese news agency Lusa.

The merger of the operators into a single company listed on the Sao Paulo stock exchange was announced Monday by the five companies in which PT and Telefónica have a stake and by PT itself in a Portuguese stock market regulatory filing.

PT and Telefonica Moviles have an equal share in, the entire capital of Brasilcel which, in its turn, has a majority stake in TCP, Tele Sudeste Celular Participações (TSD), Tele Leste Celular Participações (TLE) and Celular CRT Participações (CRTP). In its turn TCP holds a 52.5% stake in Tele Centro Oeste Celular Participações (TCO).

After the shareholder restructuring, Brasilcel will hold 62.5% of TCP, which will control all the regional mobile telecom operators owned by PT and Telefónica Moviles and will be the group’s only listed company, on the Sao Paulo and New York stock exchanges, renamed Vivo Participações.

Brasilcel, which already operates under the Vivo brand, controls 13 mobile operators covering 86% of Brazil, operating in 19 states and reaching a population that represents 83% of Brazil’s Gross Domestic Product (GDP). (macauhub)