Portuguese holdco Pharol SGPS, formerly known as PT SGPS, has announced that Brazilian telco Oi has executed the documents that set out its new corporate structure and governance model.
Oi shareholders are expected to approve the new structure at a…
Portuguese holdco Pharol SGPS, formerly known as PT SGPS, has announced that Brazilian telco Oi has executed the documents that set out its new corporate structure and governance model.
Oi shareholders are expected to approve the new structure at a general meeting to be held following the approval of Brazilian telecoms regulator Anatel, Pharol said in a market filing.
After the new structure is implemented and before Oi’s preferred shares are converted into ordinary shares, Pharol will hold a total of 84.17 million ordinary shares and 108.02 million preferred shares in the Brazilian telco.
Pharol’s voting rights will be limited to 15% of Oi’s ordinary shares.
The company is due to hold a general shareholders’ meeting on 31 July to decide on a lawsuit against former board members for the 2012-2014 period.
In a separate market filing earlier this month, the company said the challenges against its former directors include the violation of “legal, fiduciary and/ or statutory duties, among others, either by action or by omission” which caused damages to PT.
PT first announced its ill-fated merger with Oi in October 2013.
However, the deal soured after Rioforte, a unit of collapsed banking group Banco Espirito Santo (BES), defaulted on a nearly €900m debt payment to the Portuguese operator, forcing PT to settle for a smaller stake in the combined entity, as Oi claimed it was unaware of the bad investment.
As a result of the merger, Oi inherited PT Portugal, which was sold to telecoms holding Altice for €7.4bn (US$8.3bn) in April.
A PwC independent analysis published earlier this year criticised PT SGPS’s risk management policy in relation to the Rioforte investment.
