Brazil’s Alares issues notes to reinforce cash position, operations

Brazilian internet service provider Alares raised 150mn reais (US$30mn) in a public notes issuance to reinforce its cash and finance its operations.

Law firm Veirano advised Triple Play Brasil Participações, the holding company that owns the Alares brand, in the public offering, according to the LatinAmerican Lawyer platform.

UBS Brasil Corretora de Câmbio, Títulos e Valores Mobiliários acted as the underwriter, which was advised by Lobo de Rizzo Advogados, said the platform.

Alares had 672,855 telecoms contracts as of end-January, according to regulator Anatel.

Of the total, over 626,000 were fixed broadband contracts, making it the 12th largest provider in the country, with the remainder being for pay TV (29,600) and fixed telephony (17,300).

Since 2015, Alares has made 19 acquisitions, the latest of which was internet service provider Webby. In 2021, US fund Grain became the majority shareholder of Alares. 

Webby’s acquisition was completed in October and added 115,000 clients in São Paulo and Paraná states to Alares’ base. The deal also expanded Alares' backbone to 25,400km in nine states.

With the purchase, Alares said it will serve more than 627,000 customers in 175 cities, in addition to having 2,300 employees and 90 stores.

The acquisition of Webby was carried out by Videomar, a wholly owned subsidiary of Triple Play Participações.