Brazilian telecoms operator Oi said the possible liquidation of Rioforte, which owes Portugal Telecom (PT) nearly €900m (US$1.15bn), will not impact its merger with the Portuguese incumbent.
In a securities filing, Oi also reiterated that it will…
Brazilian telecoms operator Oi said the possible liquidation of Rioforte, which owes Portugal Telecom (PT) nearly €900m (US$1.15bn), will not impact its merger with the Portuguese incumbent.
In a securities filing, Oi also reiterated that it will still go ahead with the planned listing of the combined entity on the Novo Mercado segment of Sao Paulo’s stock exchange.
Rioforte defaulted on €847m of commercial paper it owed to PT in July, resulting in the telco’s stake in the Oi merger falling from 37.4% to 25.6%.
On 17 October, a Luxembourg court rejected Rioforte’s request for creditor protection, fuelling speculation that PT would not be able to recover much of its debt and, as a result, that the merger with Oi would be undone.
PT’s shares fell more than 10% to €1.09 at closing yesterday.
Earlier this month, Oi confirmed that it was still committed to the deal but was considering selling some assets to reduce its debt.
Luxembourg-based Altice is understood to be working on a bid for PT. Other suitors are also rumoured to be circling the asset.
