S&P: Telemig unaffected

Standard & Poor's said that the decision of the ultimate major shareholder of Telemig Celular SA and Amazonia Celular SA, Mem Celular Participações SA (not rated) to seek strategic alternatives to its investments in both telecom operators will not have an immediate impact on the ratings on either company.

Mem announced on Jan. 30 that it hired Merrill Lynch & Co. to help it assess its investments in Brazilian mobile operations, the agency said.

The agency noted that the most likely and natural scenario is that Mem will sell Telemig and Amazonia to one of the larger-scale mobile operators in Brazil, which could bring financial and operational strengths both to Telemig and Amazonia and positively affect the ratings.

Nevertheless, there are still many uncertainties surrounding the potential sale of the companies, such as the timeframe for the completion of any transaction, the view of the regulatory body and the number of potential buyers. We will assess the impact of the potential sale of the companies as a more clear definition from shareholders is revealed, the agency said.

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