Portuguese incumbent Portugal Telecom (PT) has agreed to buy a minimum 22.38% direct and indirect stake in Brazilian operator Oi for R$8.2bn (US$4.9bn).
The deal had been signed originally in July 2010. In a statement today, the company said that it…
Portuguese incumbent Portugal Telecom (PT) has agreed to buy a minimum 22.38% direct and indirect stake in Brazilian operator Oi for R$8.2bn (US$4.9bn).
The deal had been signed originally in July 2010. In a statement today, the company said that it expected the deal to close in March 2011.
PT will make a capital increase of R$12bn in the two Oi subsidiaries, Tele Norte Leste (TNL) and Telemar Norte Leste (TMAR).
PT will achieve its 22.38% stake in Oi through gaining stakes in the Oi subsidiaries AG Telecom (35% stake), LF Tel (35% stake), TmarPart (12.07% stake) and stakes in TNL and TMAR, which have not yet been determined.
PT also said that Oi had indicated its “intention” to acquire a 10% stake in PT.
The deal means that PT will once again have a significant presence in the Brazilian market, having sold its 50% stake in Vivo’s holding company JV, Brasilcel, to Telefonica for E7.5bn in 2010.
It said in a statement: “PT firmly believes that is able to leverage its successful experience in developing innovative and technologically advanced solutions for corporate customers, fixed-to-mobile convergence, mobile broadband, pay-TV and triple-play to contribute significantly to improve further Oi’s operational and financial performance, considering its strong presence in the Brazilian market and the potential for future growth.”
The company also announced plans by Brazilian holding company CTX to incorporate PT subsidiary Dedic GPTI through the merger of their call centre and IT services.
As part of the deal, PT will hold a 19.9% stake in CTX, which represents a 19.5% stake in Contax, CTX’s call centre operation. PT will also receive R$200m (US$120m) in net cash inflow.
PT expects the CTX-Dedic FPTI deal to be completed in early May 2011.
