Investors in Brazilian operator Oi have approved a proposed capital increase, which could amount to more than R$8bn (US$3.5bn) and paves the way for its merger with Portugal Telecom (PT).
Smaller shareholders had argued against the terms of the merger…
Investors in Brazilian operator Oi have approved a proposed capital increase, which could amount to more than R$8bn (US$3.5bn) and paves the way for its merger with Portugal Telecom (PT).
Smaller shareholders had argued against the terms of the merger and hoped for a sweetener. But Brazil’s securities commission, the CVM, dismissed an appeal yesterday and allowed today’s vote to go ahead.
The complaints from minority investors, led by Tempo Capital, centred on PT’s assets, which they argued were overvalued in the merger agreement, thus diluting their stock.
However after the CVM allowed Oi’s larger shareholders, which include PT, to vote in yesterday’s ruling, the result of the ballot was expected to pass without event.
Oi will now market the new shares from tomorrow and 14 banks are reported to have committed to invest already.
The capital raise is set to be priced on 16 April and close on 23 April.
