WorldCom (NASDAQ:WCOM) to sell Brazilian stake - FT
Reuters, 07/26/2000 19:54
LONDON, July 26 (Reuters) - WorldCom Inc, the U.S. telecommunications group, is poised to sell a minority stake in its Brazilian satellite subsidiary to SES-Astra (LUX:SESF), the European satellite operator, the Financial Times reported on its website on Wednesday.
SES is understood to have struck a deal to buy 20 per cent of the satellite division of Embratel (SAO:EBTP3), WorldCom's Brazilian subsidiary, the FT said.
It added that the agreement, which will see SES pay $135 million for the shareholding, is thought to place a value of about $635 million on the business.
SES is also thought to have agreed an option to buy a further 10 per cent stake at a later date, the FT said.
The investment by SES is understood to be part of a deal that will see Embratel develop commercial high-speed Internet services.
The service will initially be offered in Brazil but will be broadened to other countries in Latin America, the paper said.
Satellites are being used to offer broadband Internet services, especially to areas where cable or fixed-line telephone networks have not yet been set up.
Embratel runs a direct-to-home television business with about seven million subscribers.
The deal is the latest move by SES to develop its satellite footprint outside its traditional markets in Britain and continental Europe, the FT said. uk.economics.news@reuters.com))
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