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NEWS
For Immediate Release From MasTec, Inc.
May 21, 1997 3155 N.W. 77th Avenue, Suite 135
Miami, Florida 33122-1205
Tel : (305) 599-1800
Fax : (305) 406-1908
For more information contact:
Edwin D. Johnson,
Chief Financial Officer
www.ejohnson@mastec.com
MASTEC AGREES TO ACQUIRE CONTROLLING INTEREST
IN BRAZILIAN INFRASTRUCTURE PROVIDER
MIAMI, FL - MasTec, Inc. (NYSE: MTZ) and Inepar, S.A. Industria e Construcoes
(Sao Paulo Stock Exchange: IN) announced today an agreement to sell a
controlling interest in Inepar's telecommunications infrastructure construction
division to MasTec. The terms of the agreement call for MasTec to invest $29.4
million in new capital in the company for a 50% interest and allows MasTec to
acquire an additional 1% interest from Inepar for MasTec shares. The new venture
will do business as Inepar-MasTec and is expected to quickly become a leading
telecommunications construction services company in Brazil.
Inepar is one of the largest providers of services, equipment and capital goods
to the telecommunications and energy industries in Brazil with a significant
presence throughout the rest of South America. Inepar is located in most of the
26 states of Brazil with a strategic concentration in the more populous and
industrialized areas. Inepar also has offices in most of the other South
American countries. Inepar is the Brazilian partner to Motorola for the Iridium
Project and acts as a privileged infrastructure provider for the project
worldwide. In addition, Inepar has several joint ventures in the energy sector
with substantial international partners such as General Electric, Hubell and
Landys & Gyr. The Inepar Group has consolidated assets in excess of half a
billion dollars, net assets of $175 million and produced revenue last year,
including its proportion of revenue earned through joint ventures, of $436
million. Stockholders in the Company include many prominent Brazilian pension
funds.
Upon its formation, Inepar-MasTec will have a backlog of telecommunications
infrastructure projects in excess of $230 million with near-term prospects for
significant additional projects.
Atilano Oms Sabrinho, President and Chief Executive Officer of Inepar, stated:
"The Brazilian telecommunications market is undergoing tremendous change as a
mandate for the systematic privatization of Telebras and eventual deregulation
of the industry has created significant new opportunities. We anticipate that
the build-out of telecommunications infrastructure in Brazil over the next few
years will dwarf historical expenditures and believe that the new venture with
MasTec will bring a formidable competitor to the Brazilian infrastructure
market."
Jorge Mas, President and Chief Executive Officer of MasTec, stated: "We have
been studying the Brazilian market for some time and have closely monitored the
exciting developments taking place both in the Brazilian economy and in the
telecommunications industry there. We are very excited with the opportunity to
enter this market with an established partner of such a high reputation and
standing as Inepar. By forming a well capitalized venture with an existing
backlog of contracts, we are confident that Inepar-MasTec can quickly become a
leading market force in the provision of telecommunications infrastructure
services in Brazil and also in the Mercosur market."
The transaction is not expected to require any regulatory approvals and is
scheduled to be completed within the next few weeks.
Both companies will submit the agreement to their respective boards within a
week.
Opening the Lines of Communication(R) worldwide, MasTec is one of the world's
leading telecommunications and related infrastructure service providers, serving
clients throughout the United States, Latin America and Spain.
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