DIRECTV Latin America, a subsidiary of DIRECTV (NYSE: DTV) is further expanding into Latin America, underscoring its ambition in such a high growth market.
The company announced that it has completed its $604.8 million cash for stock transaction with Globo Comunicação e Participações S.A.
The closure of these deal with Globo brings DIRECTV’s ownership of SKY Brasil up to approximately 93% from 74%, leaving Globo with the remaining 7% stake.
DIRECTV acquired 178,830,000 shares, or 18.9% of SKY Brasil in the deal from Globo and its affiliates.
The arrangement still calls for Globo to continue providing its programming to SKY under pre-existing agreements. Globo notified DIRECTV of its intent to exercise its right to exchange the shares back in June of this year. Globo retains the right up until January 2014 to exchange all of its remaining equity interests in SKY Brasil.
Shares of DIRECTV are down about 0.4% at $39.50, but this news is not really the culprit as the event was known. The 52-week trading range is $29.83 to $44.61 and the market cap is some $32.9 billion. DIRECTV posted revenues of $6.025 billion for its latest quarter alone.
JON C. OGG
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