What does the Telemar/Contax spin-off consist of?
Tele Norte Lestes (TNL) Board of Directors approved the spin-off of the telecommunication activities, concentrated at Telemar Norte Leste, from the call center segment, operated by Contax, both of which controlled by TNL. After this change Contax will no longer be a TNL controlled, but will be directly controlled at the end of the operation, by CTX participaes S/A, TNLs controller. The operation was carried out in two phases: in the first Caroaci, TNLs controlled (99.9%) from now on will be called Contax Participaes S.A., and will directly control Contax. Its Shareholders Equity will grow by R$ 273.3 million which correspond to: • the transference of all the TNL Contax shares held by TNL at a R$ 126 million book value to Contax Participaes • R$ 57.6 million credit payable to TNL by Contax • TNLs cash R$ 90 million In the second phase, occurred TNLs capital reduction, and Contax Participaes S.A shares will be distributed afterwards among TNLs shareholders. Each TNL shareholder will rece
