QUALCOMM Announces Closing of Vesper Sale.
Date: Tue, 02 Dec 2003 20:28:24 -0500
QUALCOMM Announces Closing of Vesper Sale
SAN DIEGO, Dec. 2 /PRNewswire-FirstCall/ -- QUALCOMM Incorporated
(Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access
(CDMA) digital wireless technology, today announced the closing of the
transaction in which Embratel Participacoes S.A. acquired from QUALCOMM its
indirect controlled operating subsidiaries, Vesper S.A and Vesper Sao Paulo
S.A. (Vesper), together with their immediate holding companies Vesper Holding
S.A. and Vesper Holding Sao Paulo S.A. As part of this transaction, QUALCOMM
has retained, through a newly formed indirect controlled subsidiary (TowerCo),
ownership and control of Vesper's existing 622 communication towers and
related interests in tower site property leases.
Concurrent with the closing of the transaction, Vesper and TowerCo entered
into a 10-year agreement (renewable at Vesper's option for up to two
successive five year terms) whereby Vesper will pay a monthly fee for use of
aerial and ground space on the tower sites. QUALCOMM expects that TowerCo's
extensive network of tower sites will be attractive to other parties who are
interested in gaining access to these sites via similar usage rights
arrangements -- particularly in the key markets of Sao Paulo and Rio de
Janeiro where operators' ability to secure and build new tower sites is often
challenging. Under the tower usage arrangement, QUALCOMM preserves the
ability, and plans, to sell some or all of its interest in TowerCo and/or the
tower sites directly (with assignment of the associated rights under the usage
rights agreement).
"This transaction is a positive strategic move for all parties involved,"
said Anthony S. Thornley, president and COO of QUALCOMM. "Embratel's
financial strength, Brazilian telecom expertise, and ability to realize
significant synergies from its existing operations will help Vesper enhance
its voice and data service offerings. In particular, we are encouraged by
Embratel's plans to extend and expand Vesper's position in Brazil's high-speed
broadband Internet access market as it grows Latin America's first, and
largest, 3G CDMA 1xEV-DO network. Furthermore, we are excited about
Embratel's ability and plans to expand CDMA's market position as the dominant
wireless access technology within Brazil."
SOURCE
QUALCOMM Incorporated
12/02/2003 |
