Oi completes BrT takeover

12 Jan 2009

Brazilian telecoms operator Oi (Telemar) has formally completed the purchase of its counterpart Brasil Telecom (BrT), the former said in a statement as cited by BNamericas. Oi has paid BRL5.37 billion (USD2.33 billion) for 81 million BrT common shares – worth 61.2% of BrT’s voting capital – equivalent to BRL77.04 per common share. The final figure was agreed in April 2008, adjusted for variations in the average interbank lending rate, and minus the BRL998 million debt of Invitel, former BrT controller, which was assumed by Oi. Going forward, Oi intends to seek approval from the securities regulator CVM to conduct a public tender offer to acquire BrT shares from minority shareholders. This request is expected to be filed within the next 30 days. It also plans to invest over BRL30 billion over the next five years as it works to double the number of subscribers and buy companies abroad. The takeover is worth an estimated BRL13 billion in total.

Brazil, Brasil Telecom (BrT), Oi