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1069 - 300 Lisboa, Portugal
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
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| RELEASE |  |
TCP Successfully Completes R$2,054 million Capital Increase
Lisbon, Portugal, 5 January 2005 - Brasilcel, the 50-50 joint venture of Portugal Telecom and Telefónica Móviles for mobile operations in Brazil, which operates under the commercial name Vivo, announces that Telesp Celular Participações (TCP) successfully completed the capital increase of approximately R$2,054 million.
TCP has announced that a special meeting of the Board of Directors will be held on 7 January 2005 to ratify the capital increase.
The capital increase of approximately R$2,054 million comprised the successfully completed rights issue of R$2,000 million and the subscription in kind equivalent to the tax credits related to year 2003 in the amount of R$53.89 million.
The use of proceeds of the rights issue will be to (1) repay a bridge loan with Banco ABN Amro Real related to the tender offer for a portion of the shares of TCO; and (2) to repay other short-term debt. The capital increase will improve TCP’s capital structure, providing it with financial flexibility to carry out its capex programme.
After the ratification of the capital increase by the Board of Directors, the controlling shareholders will increase the economic interest in TCP from 65.12% to 65.70%, through the ownership of 524,712 million common shares (94.90% of TCP’s total common shares) and of 515,084 million preferred shares (50.02% of TCP’s total preferred shares).
| Ownership before Capital Increase |
Ownership after Capital Increase | |||||
| ON | PN | Total | ON | PN | Total | |
| Controlling Shareholders | 93.66% | 49.79% | 65.12% | 94.90% | 50.02% | 65.70% |
| Other Shareholders | 6.34% | 50.21% | 34.88% | 5.10% | 49.98% | 34.30% |
This information is also available on PT’s IR website http://ir.telecom.pt.
| Contact: | Nuno Prego, Investor Relations Director |
| nuno.prego@telecom.pt | |
| Portugal Telecom | |
| Tel.: +351 21 500 1701 | |
| Fax: +351 21 500 0800 |
|
PORTUGAL TELECOM, SGPS, S.A.
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| By: |
/S/
Nuno Prego
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Nuno Prego
Investor Relations Director
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