The boards of three of the companies within the Oi group have approved the group’s corporate reorganisation, which was first announced in May.
In a statement to investors yesterday, Oi said that the boards of Tele Norte Leste Participacoes (TNL),…
The boards of three of the companies within the Oi group have approved the group’s corporate reorganisation, which was first announced in May.
In a statement to investors yesterday, Oi said that the boards of Tele Norte Leste Participacoes (TNL), Telemar Norte Leste (TMAR) and Brasil Telecom (BRT) approved the reorganisation of Oi’s complex corporate structure.
TNL, TMAR and BRT are currently all publicly-traded and have a total of seven classes of shares.
The group also controls the holding company Coari Participacoes.
The corporate reorganisation will consolidate the equity interests of the group, meaning that only one Oi company will be publicly-traded.
The reorganisation will involve several parts.
First, redeemable preferred shares in BRT will be created. These will be distributed to BRT shareholders and then immediately redeemed.
Part of TMAR will be split-off and acquired by Coari. This will be followed by a share exchange between TMAR and Coari.
TNL and Coari will then be merged into BRT.
BRT will be renamed Oi and will consolidate all the equity interests of the group.
Oi said in its statement that the reorganisation was still subject to the approval of the shareholder meetings of the relevant companies within the Oi group.
