11) INVESTMENTS
a) Information on investees
The Company holds equity interests in wholly-owned subsidiaries (subsidiaries) and jointly-owned subsidiaries. Below, we present the main information of the Company's investees.
TData: The Company's wholly-owned subsidiary, headquartered in Brazil, has the purpose of providing and operating value-added services (VAS); integrated business solutions in telecommunications and related activities; technical assistance and maintenance of telecommunications equipment and networks and project design.
TData is the parent company of TGLog (acquired on October 28, 2015 for R$15,811) and Terra Networks (acquired on July 3, 2017 for R$250,000).
GVTPart: A wholly-owned subsidiary of the Company up to March 31, 2016. GVTPart. was controlling shareholder of GVT and headquartered in Brazil, the business purpose of GVTPart is to hold interest in other domestic or foreign companies as a partner, shareholder or member. GVT provides landline telephone, data, multimedia communication and pay-tv services in the entire Brazilian territory. GVTPart. was merged into the Company on April 1, 2016 (Note 1 c.2).
POP: The Company's direct subsidiary on April 1, 2016 (Note 1c2), is engaged in the performance of activities related to information technology, internet and any other networks; hosting services and the commercial operation of websites and portals; handling, provision and storage of information and data; sale of software, hardware, telecommunication equipment and electronics; development, licensing and maintenance of information systems and routines; development of electronic commerce; creation and administration of own and/or third-party databases; sale of publicity and advertising and, banner vehicles; and holding interest in other companies as member or shareholder, and may also form consortia and/or other forms of association. Until March 31, 2016, POP was controlled by GVT (Note 1 c.2).
POP is the wholly-owned subsidiary of Innoweb Ltda ("Innoweb"), whose business purpose is to operate as an internet provider; performing information activities; all forms of telecommunications activities, including the transmission of voice, data and information; sale of telecommunications and electronic equipment and/or accessories; and holding interest in other companies as member or shareholder, and may also form consortia and/or other forms of association.
Aliança: Jointly-controlled subsidiary, headquartered in Amsterdam, Netherlands, with 50% interest held by the Company, this entity is engaged in the acquisition and management of subsidiaries, and holding interest in companies of the telecommunications industry.
AIX: Jointly-controlled subsidiary headquartered in Brazil, with 50% interest held by the Company, this entity is engaged in holding interest in Consórcio Refibra, and in performing activities related to the direct and indirect operation of activities associated with the construction, completion and operation of underground networks for optical fiber ducts.
ACT: Jointly-controlled subsidiary headquartered in Brazil, with 50% interest held by the Company, this entity is engaged in holding interest in Consórcio Refibra, and in performing activities related to the rendering of technical support services for the preparation of projects and completion of networks, by means of studies required to make them economically feasible, and monitor the progress of Consortium-related activities.
Below is a summary of significant financial data on the wholly-owned subsidiaries:
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At 12/31/17 |
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At 12/31/16 |
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Cia ACT |
|
Cia AIX |
|
Aliança |
|
Cia ACT |
|
Cia AIX |
|
Aliança |
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Equity interest |
|
50.00 |
% |
50.00 |
% |
50.00 |
% |
50.00 |
% |
50.00 |
% |
50.00 |
% |
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|
|
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|
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Summary of balance sheets: |
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Current assets |
|
17 |
|
22,431 |
|
167,540 |
|
15 |
|
20,337 |
|
145,121 |
|
|
Noncurrent assets |
|
— |
|
13,410 |
|
— |
|
— |
|
12,879 |
|
— |
|
|
Total assets |
|
17 |
|
35,841 |
|
167,540 |
|
15 |
|
33,216 |
|
145,121 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Current liabilities |
|
1 |
|
4,084 |
|
58 |
|
1 |
|
4,029 |
|
101 |
|
|
Non-current liabilities |
|
— |
|
4,811 |
|
— |
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— |
|
5,415 |
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— |
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Equity |
|
16 |
|
26,946 |
|
167,482 |
|
14 |
|
23,772 |
|
145,020 |
|
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Total liabilities and equity |
|
17 |
|
35,841 |
|
167,540 |
|
15 |
|
33,216 |
|
145,121 |
|
|
|
|
|
|
|
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|
|
|
|
|
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Investment Book value |
|
8 |
|
13,473 |
|
83,741 |
|
7 |
|
11,886 |
|
72,510 |
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|
|
|
2017 |
|
2016 |
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Summary of Income Statements: |
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Cia ACT |
|
Cia AIX |
|
Aliança |
|
Cia ACT |
|
Cia AIX |
|
Aliança |
|
Net operating income |
|
82 |
|
45,622 |
|
— |
|
79 |
|
42,840 |
|
— |
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Operating costs and expenses |
|
(80) |
|
(43,448) |
|
(43) |
|
(72) |
|
(41,760) |
|
(155) |
|
Financial income (expenses), net |
|
— |
|
1,686 |
|
27 |
|
— |
|
1,980 |
|
41 |
|
Income and social contribution taxes |
|
— |
|
(686) |
|
— |
|
(1) |
|
(464) |
|
— |
|
Net income (loss) for the year |
|
2 |
|
3,174 |
|
(16) |
|
6 |
|
2,596 |
|
(114) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
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Equity pickup, according to interest held |
|
1 |
|
1,587 |
|
(8) |
|
3 |
|
1,298 |
|
(57) |
b) Changes in investments
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Other |
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Aliança |
|
AIX |
|
ACT |
|
investments (1) |
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Total investments |
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Balances at 12/31/15 |
|
89,799 |
|
10,099 |
|
4 |
|
1,259 |
|
101,161 |
|
Equity pick-up |
|
(57) |
|
1,298 |
|
3 |
|
— |
|
1,244 |
|
Dividends and interest on equity |
|
— |
|
489 |
|
— |
|
— |
|
489 |
|
Other comprehensive income |
|
(17,232) |
|
— |
|
— |
|
83 |
|
(17,149) |
|
Balances at 12/31/16 |
|
72,510 |
|
11,886 |
|
7 |
|
1,342 |
|
85,745 |
|
Equity pick-up |
|
(8) |
|
1,587 |
|
1 |
|
— |
|
1,580 |
|
Other comprehensive income |
|
11,239 |
|
— |
|
— |
|
338 |
|
11,577 |
|
Balances at 12/31/17 |
|
83,741 |
|
13,473 |
|
8 |
|
1,680 |
|
98,902 |
|
(1) |
Other investments (tax incentives and interest held in companies) are measured at fair value. |