Net Serviços announced the conclusion of the first stage of its capitalization process Monday, August 12, involving a public share issue. To date it has raised 597.5 million Brazilian Reals plus 68.3m BRL from debenture conversion between August 6 and 9. An extraordinary shareholder meeting scheduled for August 16 is expected to approve another capital increase leading to a private share issue. The two stages together should fetch 1.194bn BRL in cash, debenture conversion and inter-company debt swaps.
Globo ? In this first stage, the Globo group contributed 148.4m BRL in 2001 as an ?advance on future capital increases? (Portuguese-language acronym AFAC). Loan agreements between Bradespar and RBS accounted for a further 114.6m BRL. Net owed RBS 2.2m BRL for programming, and this was converted into equity. The rest breaks down as follows: 79.2m BRL from debenture conversion between controlling shareholders, 174.7m BRL in cash injected by major shareholders, 60.8m BRL in third-party debenture conversion, and 17.6m BRL in cash for new shares acquired by third parties, besides the 68.3m BRL in debenture conversion between August 6 and 9. The second stage will consist of a private share issue to be authorized on August 16 for at least 528.7m BRL, comprising 217.7m BRL from Globo to complete the 2001 AFAC, 155.2m BRL in programming debts owed by Net to Globopar (possibly Globosat), 78.1m BRL in debentures held by the group, and 77.8m BRL in debentures acquired by BNDES.
New money
