Algar restructures.

Brazil, Jan 18, 2002

Algar group the owner of 20 companies and R$1.1bil turnover in 2001, is to restructure its business in telecommunication sector in Brazil, that represents 54% of its business in the country. The plan is to join 5 controlled companies with operation in mobile and fixed communications, cable TV, broadband, and Internet. They are : CTBC Telecom, CTBC Celular, Engeredes, Net Site, and Image Telecom. Consulting company Booz-Allen was contract to develop the restructuring project. The group announced R$1bil investment in infrastructure from 2002 to 2006. Only in 2002 the prospect is to invest R$200mil. In 2001 Algar sold for R$950mil its interest on Tess to the consortium Telecom Americas, teamed by Bell Canada International (44,3%), Telmex (44,3%), and SBC (11,4%). The strategy allowed Algar to reduce its debts from R$940mil to R$651mil. Algar ended 2001 registering R$1.1bil net earning, 36% growth compared to 2000 when it was R$850mil.

Copyright (c) 2002, South American Business Information, All rights reserved.

  INDUSTRY KEYWORD: Telecommunications                   Internet Services  EVENT:            Restructuring 

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