Brazilian regulator the CVM has approved Oi’s request to implement the revised terms of its merger with PT SGPS, subject to Oi shareholder approval.
Last July, Brazilian telco amended terms of its combination with PT, after Rioforte, a unit of…
Brazilian regulator the CVM has approved Oi’s request to implement the revised terms of its merger with PT SGPS, subject to Oi shareholder approval.
Last July, Brazilian telco amended terms of its combination with PT, after Rioforte, a unit of collapsed banking group Banco Espirito Santo (BES), defaulted on a nearly €900m debt payment to the Portuguese operator.
In a statement, the regulator said that Oi’s shareholders, but not PT, which holds a 25.6% stake in the Rio de Janeiro-based operator, must hold a meeting to vote on the new terms.
In December, Oi agreed to sell its PT Portugal, which consists of Portuguese and Hungarian assets held by PT SGPS, to Luxembourg-based telecoms holding Altice for €7.4bn (US$8bn).
The sale, which is currently being reviewed by EU regulators, will put an end to Oi’s ambitious plan of creating “a leading telecommunications operator, covering a geographical area of 260 million inhabitants and about 100 million clients”.
Oi, which ranks fourth among Brazil’s mobile operators, has been striving to reduce its R$46bn (US$15bn) debt and play a leading role in the country’s consolidation process via a potential merger with larger rival, Telecom Italia-owned Tim Brasil.
