Singapore fund buys 25% of Brazil's Algar Telecom

Brazilian regional operator Algar Telecom announced that it sold 25 percent of its total and voting capital to Archy, an affiliate of GIC Special Investments, Singapore's sovereign fund in Asia. The sale involves a capital increase of BRL 352-379 million through the issue of new shares at BRL 13.40 each. 

The agreement must be approved by the Administrative Council for Economic Defense (CADE) and the National Telecommunications Agency (Anatel) of Brazil before taking effect. Algar Telecom provides telecom services to corporate and retail customers and is present in 10 states and 337 cities in Brazil.

Algar Telecom filed for an IPO in October, in order to raise money to expand its network and services. The company reportedly shelved the plans for the listing in November to avoid competing with other IPOs underway on the local market.