Banking syndicate buys 15 pct of new Luso-Brazilian telecommunications company CorpCo

11 February 2014

A syndicate of 12 banks has made a commitment to Brazilian telecoms operator Oi to buy up to 15 percent of the new group that results from its merger in 2013 with Portugal Telecom (PT), the Brazilian press reported Friday.

The banks reached an agreement with Oi to raise, by April, 6 billion reals (around US$2.5 billion) and 8 billion reals (around US$3.357 billion) on the market to buy shares in the new company, according to Brazilian newspaper Folha de São Paulo.

The syndicate, led by Brazilian investment bank BTG Pactual, includes Credit Suisse, Banco Espírito Santo, Merrill Lynch and Barclays banks.

With a smaller stake in the syndicate are Itaú Unibanco, Bradesco, Citibank, Santander, Votorantim, Banco do Brasil and Caixa Geral de Depósitos.

According to the Brazilian newspaper if the banks are unable to raise the total amount agreed with Oi each bank will make up the difference and become a shareholder in the new group. (macauhub)

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