TIM S.A. (B3: TIMS3; NYSE: TIMB), a leading Brazilian telecommunications company, has announced an amendment to its advertising agency service provision agreement with BETC Havas Advertising Agency Ltda. The adjustment, reported today, extends the existing contract for an additional 12 months and increases the total amount involved to R$83,640,000.00 (approximately $16,728,000.00).
The original contract, which began on May 1, 2022, was set to expire on April 30, 2025. With this amendment, the new expiration date is April 30, 2026. The additional R$24,000,000.00 (approximately $4,800,000.00) included in the amendment is allocated for the extended term.
BETC Havas, a member of the same controlling group as TIM S.A., was selected as the advertising service provider following a competitive process in January 2022, where three specialized companies were invited to submit proposals.
The decision to extend the contract was made independently by TIM S.A., with the approval process involving a thorough examination by the company's Statutory Audit Committee—comprised solely of independent members—and subsequent approval by the Board of Directors. The contract extension was deemed to align with the company's best interests, following a review of the technical and commercial scores from the initial competition.
The contract stipulates that BETC Havas and its subcontractors maintain various insurance policies throughout the duration of the agreement. These policies cover personal accidents, general and professional civil liability, and risks associated with the services provided. Furthermore, TIM retains the right to terminate the agreement early with a 30-day notice, without owing compensation to BETC Havas.
This transaction is disclosed in compliance with the Brazilian Securities Commission (CVM) Resolution 80/22 and is based on a press release statement. The company emphasizes that the shareholders and administrators of Telecom Italia (BIT:TLIT), the parent company of TIM S.A., did not partake in the negotiation of the agreement as representatives of TIM. The transaction showcases TIM's commitment to transparency and adherence to regulatory requirements.
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