Portugal Telecom has paid R$8.32bn (US$5bn) to acquire a direct and indirect 25.28% stake in 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…
Portugal Telecom has paid R$8.32bn (US$5bn) to acquire a direct and indirect 25.28% stake in 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, due to the stakes in TNL and TMAR, which were unconfirmed when the deal was first announced.
In February, when the agreement was unveiled, PT said it would pay R$8.2bn (US$4.9bn) to acquire a 22.38% direct and indirect stake in Oi as part of the two companies’ strategic partnership, signed in July 2010.
As part of the deal, PT has also acquired a 16.2% stake in Brazilian 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 Brazilian call centre operations: Dedic/GPTI for Portugal Telecom and Contax for CTX.
The transactions were due to complete by 1 April.
BoA Merrill Lynch, Banco Espirito Santo and Morgan Stanley advised PT on the acquisitions.
PT sold its 50% stake in mobile leader Vivo’s holding company JV, Brasilcel, to Telefonica for E7.5bn in 2010.
And Oi acquires 3% of PT…
On 25 March, Oi announced that it would buy a 3% stake in PT from Barclays Capital for an undisclosed sum.
Under the terms of the contract, Barcap would transfer 26,895,360 common shares in PT to Oi by 4 April.
It also said that Oi was already entitled to some voting rights connected to these shares, without providing more specific details.
The price Oi was paying for the stake was also not disclosed.
Under the terms of the original strategic partnership, Oi is due to acquire 10% of the Portuguese incumbent.
