Brazilian wireless operator Oi has appointed current CEO of Portugal Telecom Zeinal Bava as its new head with analysts predicting that the change could lead to asset disposals.
PT’s former CEO and current chairman, Henrique Granadeiro, takes over…
Brazilian wireless operator Oi has appointed current CEO of Portugal Telecom Zeinal Bava as its new head with analysts predicting that the change could lead to asset disposals.
PT’s former CEO and current chairman, Henrique Granadeiro, takes over Bava’s previous role in Lisbon.
Jose Mauro Carneiro da Cunha, who was Oi’s interim CEO, returns to his position as chairman.
Cunha took over following the departure of Francisco Valim, who left Oi in January after 18 months as CEO.
Bernstein Research analysts expected the new CEO to address Oi’s finances to deal with the capex demands the government is placing on operators ahead of the World Cup and Olympics which are being held in the country in the coming years.
“We expect Mr Bava to focus more on reducing the balance sheet with asset sales including submarine cables and to increase wireless network investment, roll out a better integrated product including TV and to be much more productive and innovative than previous teams at finding cost savings,” the analysts said in a note.
PT is the largest investor in Oi with a 23.3% stake and part of a shareholder group which controls the telco alongside The Andrade Gutierrez Group and the Jereissati Group.
Bava will leave one foot in the PT camp to work on synergies between the Brazilian and Portuguese operators to improve their strategic partnership. The 46-year-old executive joined PT in 1999 and became CEO in 2008.
