Net Serviços and UnitedGlobalCom, Inc. (UGC, formerly UIH) have concluded an agreement on the operation in Jundiaí, São Paulo State. They each own just under 50%, with rest being held by several different investors. No shares changed hands but they agreed to bury their differences after a crisis lasting two years. Net Jundiaí will be given special treatment for accounting purposes so as to permit distribution of earnings to both parent companies. It has been profitable for some years. The first dividend, relating to 2002, has already been paid out.
UGC?s Paulo Saboya will stay on as chairman of the board but Net Serviços will continue to run the operation under a management contract. According to sources consulted by PAY-TV News, this is proof of UGC?s confidence in Net Serviços? new management led by Francisco Valim.