Portugal Telecom group to be wound up following merger into CorpoCo.

29 October 2013

The Portugal Telecom group will be wound up following its merger with Brazil’s Oi, which will create the CorpCo group, but the PT brand will continue in the Portuguese market, according to a statement filed with Portuguese stock market regulator CMVM.

In the memorandum of understanding that led to this deal the main shareholders of PT and Oi agreed that Portugal Telecom, SGPS would be wound up and that Oi would continue as a subsidiary of the new CorpCo group, which will be based in Brazil.

CorpCo, which will bring together PT and Oi’s businesses and operate in markets with a total population of 260 million people, will be listed on the Sao Paulo Stock Exchange and on NYSE Euronext.

“Taking into consideration the high visibility of the brands on the market,” the memorandum said, “the operations of Oi and Portugal Telecom will be maintained in their respective regions.”

The memorandum of understanding is valid until October 2014, although the PT group and Oi have already said that the merger is expected to be concluded in the first half of next year. (macauhub)