Brazil’s Oi sells Portugal Telecom’s assets

10 October 2014

Investment bank BTG Pactual, of Brazil is negotiating the sale of the assets of Portugal Telecom in an operation worth an estimated US€6.5 billion, the Brazilian press reported Thursday.

On Wednesday, financial news agency Reuters reported that French telecommunications group Altice is preparing to buy the Portuguese assets of Brazilian company Oi, which is in the process of merging with Portugal Telecom.

The Estado de Sao Paulo newspaper, citing sources close to the process, said other groups besides Altice are also interested in buying Portugal Telecom.

In Portugal the French group controls cable television, fixed telephony and internet service provider Cabovisão and business to business telecommunications company Oni, and the Público daily newspaper with the Público newspaper reporting that “the group has the will and money to acquire Portugal Telecom immediately. ”

Adding PT Portugal to Cabovisão and Oni, the company could assert itself as a major supplier of converged services in Portugal.

The Altice Group, which has 20,000 employees and is present in nine countries, with eight million fixed-line customers and 26 million mobile customers, posted revenue of 13.6 billion in 2013.

Portugal accounts for just 1.5 percent of this amount (213 million euros), but would represent 20 percent with PT Portugal, which would be “a priority” and a company “managed by the Portuguese.” (macauhub/BR/PT)