| SAO PAULO
SAO PAULO Aug 18 T4U Holding Brasil SA, the
country's No. 5 mobile phone tower operator, plans to sell
shares in an initial public offering as soaring demand for
high-speed Internet spurs the construction of thousands of
towers in Latin America's largest country.
São Paulo-based T4U and shareholder D Dots Investments BV
plan to sell an undetermined number of common shares in a
primary and secondary offering, according to a prospectus on
Monday. No details such as the IPO's potential size or the
suggested price tag were included in the prospectus.
T4U, which is controlled by Israel's Fishman Group, hired
Bank of America Merrill Lynch, Itaú BBA SA,
UBS AG and Citigroup Inc to handle the
transaction. No timetable for the transaction was disclosed.
The IPO plan, the first to be filed in Brazil in about a
year, comes at a time when tower operators such as American
Tower Corp expand in Brazil. Mobile phone operators are
disposing of their towers to instead lease them as a way to
preserve cash and protect profits in a flagging economy.
Prospects for Brazil's equity markets and stock offerings
have been gloomy this year, partly because of political
uncertainty related to the October presidential election,
bankers and investors say.
Stung by a string of deals in recent years that failed to
deliver the promised returns, investors have become especially
cautious in Brazil. About 40 of 117 IPOs priced since 2005
yielded returns above the benchmark CDI interbank lending rate,
with the remainder losing in average half the amount initially
invested, according to Thomson Reuters data.
Despite the adverse outlook, equity investors still keep a
watchful eye on Brazil because the country's stock market is
bigger, more liquid and more diverse than those in the rest of
the region, bankers said.
(Additional reporting by Aluísio Alves in São Paulo; Editing by