4th Apr 2008 08:49
Telefonica SA04 April 2008 Further to the communication filed on 3 August 2007, as provided in article 82of the Spanish Stock Market Act (Ley del Mercado de Valores), TELEFONICA S.A.hereby reports the following SIGNIFICANT EVENT In accordance with the terms of a sale and purchase agreement entered into on 2August 2007, the corresponding administrative authorisations having beenobtained, yesterday, 3 April 2008, VIVO PARTICIPACOES, S.A. ("VIVO"), aBrazilian company controlled by BRASILCEL NV - jointly controlled byTELEFONICA, S.A. and PORTUGAL TELECOM SGPS - completed acquisition of 53.90%of the voting stock (ON) and 4.27% of the preferred stock (PN) of TELEMIGCELULAR PARTICIPACOES S.A., the controlling shareholder of TELEMIG CELULAR S.A.,a mobile telephony operator in the State of Minas Gerais (Brazil). According to the terms of the sale and purchase agreement, the total purchaseprice was 1,163 million Reais (approximately 429 million euros*). VIVO alsoacquired the right held by the seller, TELPART PARTICIPACOES S.A. ("TELPART") tosubscribe in the future for paid up shares in TELEMIG CELULAR PARTICIPACOES S.A.for a price of approximately 70 million Reais (26 million euros*). Further, in accordance with Brazilian securities market legislation, VIVO willlaunch a mandatory tender offer for all the voting stock in TELEMIG CELULARPARTICIPACOES S.A. and in its subsidiary company TELEMIG CELULAR S.A., with aprice per share of 80% of the purchase price of the voting stock in TELEMIGCELULAR PARTICIPACOES S.A. and TELEMIG CELULAR S.A. VIVO has also notified itsintention to launch voluntary tender offer for shares representing up to onethird of the free float represented by the preferred stock in TELEMIG CELULARPARTICIPACOES S.A. and TELEMIG CELULAR S.A. At the same time, in relation to the other company originally contemplated inthe sale and purchase agreement,, TELE NORTE CELULAR PARTICIPACOES S.A.(controlling company of AMAZONIA CELULAR S.A.), on 20 December 2007 VIVOentered into an agreement with TNL PCS S.A. (TELEMAR GROUP) undertaking,subject to prior approval by ANATEL, to sell the shares in TELE NORTE CELULARPARTICIPACOES S.A. which TELPART undertook to sell to VIVO, on similar terms andconditions to those on which VIVO undertook to purchase those shares. Thecorresponding administrative authorisation having been obtained, that sale wascompleted yesterday, simultaneously with acquisition of TELEMIG CELULARPARTICIPACOES S.A. Madrid, 4 April 2008. ____________________ * Considering a R$/• Exchange ratio of 2.709. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L