Brazilian telecoms group Oi is not looking to unravel its merger with Portugal Telecom (PT), although it could sell some Portuguese assets, the company’s interim CEO of Bayard Gontijo reportedly said.
The company aims to sell non-core assets,…
Brazilian telecoms group Oi is not looking to unravel its merger with Portugal Telecom (PT), although it could sell some Portuguese assets, the company’s interim CEO of Bayard Gontijo reportedly said.
The company aims to sell non-core assets, including mobile towers, real estate and its Africatel business to reduce its R$46bn debt (US$19bn), Reuters cited Gontijo as saying.
Oi also plans to list the merged business on the Novo Mercado section of the Sao Paulo stock exchange by March 2015, which requires higher standards of public governance.
Gontijo reportedly added that a merger with a Brazilian rival would speed up Oi’s financial recovery, referring to the fact that the company hired BTG Pactual in August to evaluate a potential acquisition of the country’s second-largest operator, TIM Brasil.
Oi’s CFO Gontijo was named interim CEO on Tuesday, following the resignation of Zeinal Bava. Bava, who was appointed as head of the Brazil-based combined Oi-PT business in June 2013, has been instrumental in facilitating the merger, further fuelling speculation that the combination could be undone in the wake of his departure.
A few days before that, a person familiar with the situation had told TelecomFinance that Luxembourg-based telecoms holding Altice was negotiating the acquisition of Oi’s Portuguese operations and had hired Goldman Sachs and Morgan Stanley to advise it on a bid.
Owned by billionaire Patrick Drahi, Altice already has a presence in the Portuguese market through telecoms operator Oni, which it acquired in June 2013, and cableco Cabovisao, which it bought in February 2012.
In a securities filing, Oi responded to the market speculation saying it has not taken any decision regarding the sale of PT and has not received an offer for the asset.
Yesterday, Reuters suggested that the holding wants to enter into exclusive talks with Oi over PT. According to the report, Altice and Oi have already discussed issues including price and proposed deal structures, as well as exchanged information on the business.
