The Argentine telecommunitacions group Telecom bought 70% of Paraguay's satellite TV company Tuves, for which it paid US$6,264, but immediately paid another US$8.8 million to capitalize the company.
"Our Paraguayan subsidiary Núcleo has acquired shares representing 70% of the share capital and votes of Tuves Paraguay, with the prior authorization of the Comisión Nacional de Telecomunicaciones (Conatel) (Telecom regulator) of that country" said Telecom legal representative, Andrea Cerdán, through a notice to the Buenos Aires Stock Exchange.
Cerdán said that "the purchase of shares made by Núcleo, was made effective in the sum of 35 million guaraníes, equivalent to US$6,624". He also noted that "the capitalization of Tuves Paraguay was approved for 70.566 billion guaraníes, equivalent to US$12,629,262" and stressed that the capital increase "was subscribed by its shareholders in proportion to their respective shareholdings". As Telecom's share, through Núcleo, is 70%, the contribution is equivalent to 8,840,483.4 Tuves Chile sources confirmed to Convergencialatinaa that they maintain the remaining 30%.
Tuves Paraguay provides telecommunications services and distribution of audio and television channels direct to the home to approximately 71,800 customers.