Brazilian group Oi approves sale of PT Portugal

5 December 2014

The Board of Directors of Brazilian telecom group Oi Thursday approved the sale of PT Portugal to French group Altice, and the sale also needs to be approved by the general meeting of Portugal Telecom SGPS, reported Brazilian newspaper Estado de Sao Paulo.

The information comes three days after the Brazilian telecommunications operator said it had signed an exclusivity contract with the French group to negotiate the sale of PT Portugal, for a period of up to 90 days.

The French group has offered 7.4 billion euros for PT Portugal, which includes 500 million euros to be paid only if PT Portugal achieves certain revenue targets.

That represents an increase of the initial proposal from Altice of 7.025 billion euros, where 800 million of which was based on cash flow and earnings.

The sale must be approved by the general meeting of shareholders of PT SGPS, with a two-thirds majority vote in favour, because the listed company is the target of a takeover bid launched by the Terra Peregrin, owned by Angolan businesswoman Isabel dos Santos.

PT SGPS has a 25.6 percent stake in Oi, which in turn owns PT Portugal since its capital increase on 5 May last. (macauhub/AO/BR/PT)