Spanish telecoms operator Telefonica has acquired the remaining 55,1% stake in Compania de Telecomunicaciones de Chile, CTC, for approximately $985m through its wholly owned subsidiary Inversiones Telefonica Internacional.
The company offered CLP 1000 ($1,88) per share for series A shares, and CLP 900 ($1,69) per share for series B shares. According to Chilean regulation, the offer represents 32% premium for both for A and B series.
The move follows the July 2004 $1,3bn acquisition by Telefonica Moviles, Telefonica's 93%-owned wireless unit, of CTC's mobile communication services business to strengthen its position in Latin America.
Jorge Abadia, director of corporate development at Telefonica Latin America, said: "This operation does not change what we have been doing in fixed telephony with Telefonica Chile. It does give us a little more operational flexibility. The operation in Chile is perhaps the only one in which Telefonica manages with minority partners. Having minority partners slows us down when it comes to making decisions."
The transaction is expected to be completed by October subject to shareholder approval.