By Jeffrey T. Lewis

SÃO PAULO--Telefonica Brasil's shares rose 2.4% after Brazil's telecoms regulator approved a proposed capital reduction.

Shares of Vivo, as the company is known, reached 44.31 reais, the equivalent of $9.14, and were up 13% from the end of last year through Friday's close. Brazil's benchmark Ibovespa stocks index was up 0.4% in midday trading.

The capital reduction of up to BRL5 billion, approved earlier this year by the company's board of directors, is a great mechanism for Vivo to boost shareholder remuneration, analysts at BTG Pactual said in a research note.

If shareholders approve the reduction, a creditor opposition period of 60 days begins, and after that the company can decide when and how payments to shareholders will be made, the analysts said.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

September 18, 2023 11:06 ET (15:06 GMT)

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