| Compania Anonima Nacional Telefonos De Venezuela | |||
| Ticker: | VNT | Edificio CANTV, Primer Piso, Avenida Libertador | |
| Exchange: | NASDAQ-National Market | Caracas, VEN | |
| Industry: | Service (SIC Code 4813) | ||
| Type of Shares: | American Depositary Receipts | Filing Date: | 10/23/96 | |
| U.S. Shares: | 20,520,000 | Offer Date: | 1/21/97 | |
| Non-U.S. Shares: | 24,108,571 | Filing Range: | $21.50 - $24.50 | |
| Primary Shares: | 0 | Offer Price: | $23.00 | |
| Secondary Shares: | 44,628,571 | Gross Spread: | $0.55 | |
| Offering Amount: | $1,026,457,133 | Selling: | $0.33 | |
| Expenses: | $5,100,000 | Reallowance: | $0.10 | |
| Shares Out After: | 142,857,100 |
| Manager | Tier | Phone |
| Lehman Brothers Incorporated | Lead Manager | (212) 526-8100 |
| CS First Boston | Co-manager | (212) 325-2000 |
| Donaldson, Lufkin & Jenrette Securities Corp. | Co-manager | (212) 371-0641 |
| J.P. Morgan Securities Inc. | Co-manager | (212) 648-0517 |
| SBC Warburg & Company | Co-manager | (212) 224-7274 |
| Issuer's Law Firm: | Milbank, Tweed, Hadley & McCloy |
| Bank's Law Firm: | Skadden, Arps, Slate, Meagher & Flom |
| Auditor: | Arthur Andersen |
| Registrar/Transfer Agent: | Citibank, NY |
Dollar amounts in U.S. millions except for per share data | |||||
| 6 Month Ending Financials | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/95 | 6/30/96 | 6/30/96 | |||
| Revenue: | $1,203.00 | $544.00 | Assets: | $3,362.00 | |
| Net Income: | $1.00 | -$15.00 | Curr Assets: | ||
| EPS: | $0.00 | -$0.10 | Liabilities: | $1,302.00 | |
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | $557.00 | Equity: | $2,060.00 | ||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a full service telecommunications provider offering switched, fixed local and domestic and international long distance telephone service throughout Venezuela on an exclusive basis until October 2000, except in limited circumstances. The company also offers cellular services, paging services, public telephones, community telecommunications centers, private networks, rural telephone services, packet-switched data transmission, directory information services and other value added services. The company owns all of the Venezuelan public exchanges and the nationwide network of public telephone lines and public national and international long distance telephone transmission facilities. The company had gross revenues and net income of Bs. 565.4 billion and Bs. 25.7 billion, respectively, for the year ended December 31, 1995 and gross revenues and net income of Bs. 255.8 billion and Bs. 31.3 billion respectively, for the six months ended June 30, 1996. |
| Competition |
| Under the Concession, the company is to be the exclusive provider of local, domestic and international switched, fixed telephone services in Venezuela until October 2000, except in limited circumstances. For a description of the regulatory framework applicable to the company. Several entities are competing with the company in particular areas of its business. The company faces competition from companies providing leased private line networks. |
| Business Plan |
| The company's strategy is to seek to achieve profitable growth in its telecommunications business by continuing to expand its network, increase market penetration, broaden service offerings, increase network utilization, reduce costs and improve productivity. Key elements of the company's strategy include: 1) improve profitability through increased marketing focus; 2) continue cost reductions and productivity gains; 3) continue expanding mobile services; 4) grow value added services; 4) implement an interconnect strategy. |
| Use of Proceeds |
| The proceeds from the proposed offering will be distributed to selling shareholders. |