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In November 2000, we entered into a contract to sell interests
in Star One, S.A., a newly formed subsidiary that we established
by contributing our satellite segment assets. Shares representing
19.99% of common shares (without par value) and total capital
of Star One, were sold to Société Européene
des Satellites S.A. (SES) and we realized a gain of R$132.2
million on this sale. The contract provides an option for
SES to purchase an additional 10% of common shares of Star
One outstanding stock at closing of that transaction, for
a price per share equal to the price established in such contract,
plus 20% up until the completion of one year after the date
of the contract. After this one year period is completed,
such Star One shares may be purchased for the price originally
established in the contract, plus 44% of such original price,
up until completion of the second year after the date of the
contract.
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