Portuguese state group CGD sells stake in Portugal Telecom

25 October 2013

Portuguese state financial group Caixa Geral de Depósitos has sold a 6.11 percent stake in Portugal Telecom, according to a statement filed with Portuguese stock market regulator, Comissão do Mercado de Valores Mobiliários (CMVM).

In the statement the group said it had placed the shares with qualified investors and earned 190.6 million euros from the transaction.

Following the sale the state bank now has a 0.20 percent share in the telecommunications operator, as previously it had a 6.31 percent stake.

The state group explained the decision “in the context of the strategy to divest non-strategic assets,” the sale of which – a condition of Portugal’s financial bailout package – has netted CGD around 850 million euros in the last 18 months.

This sale marks the almost definitive end of state involvement in PT’s shareholder structure, after the state sold its “golden share” in the operator, which gave the Portuguese state special rights, which, for example, allowed it initially to block the acquisition of Vivo by Telefónica in 2011.

At the beginning of October, an agreement setting out the principles for a merger between Portugal Telecom (PT) and Brazilian telecom group Oi was announced to create a new company called CorpCo. (macauhub)