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Brazilian fixed, mobile and TV operator has hired financial institutions to advise it on a possible listing
Algar Telecom is considering an initial public offering of its shares.
The Brazilian fixed and mobile operator has hired financial institutions to advise it, it revealed in a filing with the country’s Securities and Exchange Commission, known locally as the CVM, earlier this week.
The company did not provide any further details at this stage, but said it will keep the market informed of its plans.
Algar Telecom provides services to 1.3 million customers via a 33,000-km fibre optic network. It operates in São Paulo, Minas Gerais, Rio de Janeiro, Goiás, Mato Grosso do Sul, Paraná, Santa Catarina and Rio Grande do Sul, as well as the country’s Federal District.
It offers fixed broadband, mobile and pay TV services – via cable and satellite – to consumer and business customers.
Algar Telecom had 528,000 fixed broadband customers at the end of July, having added over 44,000 over the previous 12 months, according to regulator Anatel. As a result, the firm has a market share of around 2%, which makes it the market’s fourth largest operator, behind America Movil, Telefonica and Oi, but ahead of TIM.
On the mobile side, Algar Telecom comes in sixth, behind the big four and Nextel’s local unit, with 1.34 million customers at the end of June and a 0.55% share of the market.
