Portuguese incumbent Portugal Telecom has signed an MoU with Brazilian mobile group Oi under which PT is expected to buy some 22.38% of Oi for as much as R$8.4bn (US$4.76bn). The deal may also see Oi’s holding company Telemar buy up to 10% of Portugal…
Portuguese incumbent Portugal Telecom has signed an MoU with Brazilian mobile group Oi under which PT is expected to buy some 22.38% of Oi for as much as R$8.4bn (US$4.76bn). The deal may also see Oi’s holding company Telemar buy up to 10% of Portugal Telecom.
Following an agreement between Portugal Telecom and Telemar shareholders Andrade Gutierrez Participacoes and LF Tel, the strategic partnership will endeavour to “develop a Luso-Brazilian telecommunication operator with global scale”, according to a PT statement.
Oi, the operating name of Telemar, last year reported revenue of US$15bn.
Portugal Telecom said that it would have a “relevant role” in the management of Telemar Participações and its subsidiaries, and that it would be able to proportionally consolidate its stake in Telemar Participações which fully consolidates its subsidiaries.
Portugal Telecom will also appoint two board members at Telemar Participacoes, one of them being alternate and two board members at TNL.
The Portuguese operator will also have the right to appoint one executive director of Telemar Participações and to participate in several committees that are already in place, or yet to be formed, at the relevant subsidiaries of Telemar Participações. It will also be able to appoint the chairman of the Engineering & Network, Technology & Innovation and Product Offering committees, once they are established.
