Brazil: Vivo to incorporate Telemig Celular Participações

24 March 2009

Lisbon, Portugal, 24 Mar – Telemig Celular would be incorporated in Telemig Celular Participações which in turn would be incorporated in Vivo Participações in order to simplify the organizational structure of Vivo and reduce the number of companies listed on the stock exchange, said Portugal Telecom in Lisbon Monday.

Vivo, a partnership between Portugal Telecom and Spain’s Telefónica, bought rival Telemig Celular Participações, which in turn controls operator Telemig Celular, last year,

In a statement to the stock market regulator or CMVM, Portugal Telecom added that, as well as reducing the costs associated with listing various companies on the Sao Paulo and New York stock exchanges, the reorganization should “bring about a higher liquidity in Vivo shares, the only company still listed, thus benefitting all shareholders in Telemig Celular Participações, Telemig Celular and Vivo.”

Portugal Telecom said it estimated that the organizational restructuring would be concluded during the second half of 2009, once shareholder approval had been gained. (macauhub)