Incumbent Portugal Telecom has paid R$8.32bn (US$5bn) to acquire a direct and indirect 25.28% stake in the Brazilian fixed and mobile operator Telemar Norte Leste (Oi).
The stake is divided into five parts, with separate investments in various Oi…
Incumbent Portugal Telecom has paid R$8.32bn (US$5bn) to acquire a direct and indirect 25.28% stake in the Brazilian fixed and mobile operator Telemar Norte Leste (Oi).
The stake is divided into five parts, with separate investments in various Oi subsidiaries.
PT has acquired a 35% stake in AG Telecom, a 35% stake in LF Tel, a 12.07% in Telemar Participacoes, a 10.4% stake in Tele Norte Leste (TNL) and a 9.43% stake in Telemar Norte Leste itself.
The 25.28% stake is significantly higher than the 22.38% originally announced by the two companies.
The increase is due to the stakes that PT is acquiring in TNL and TMAR.
In February, when the agreement for this acquisition was unveiled, PT said it would be paying R$8.2bn (US$4.9bn) to acquire a 22.38% direct and indirect stake in Oi as part of its strategic partnership with Oi, originally signed in July 2010.
As part of the deal, PT has also acquired a 16.2% stake in the holding company CTX for R$116m (US$70m), bringing its total stake in the company in 42%.
The next phase of this part of the deal is the merger of PT and CTX’s call centre operations: Dedic/GPTI for Portugal Telecom and Contax for CTX.
The transactions are expected to complete by 1 April.
BoA Merrill Lynch, Banco Espirito Santo and Morgan Stanley advised PT on the acquisitions.
Through the acquisition of this stake in Oi, PT maintains a significant presence in Brazil after its sale of a 50% stake in mobile leader Vivo’s holding company JV, Brasilcel, to Telefonica for E7.5bn in 2010.
