Oi sets aside BRL1.29bn legal provision re: BrT takeover

18 Jan 2010

Brazilian telecoms operator Telemar Norte Leste (Oi) announced last Friday it plans to set aside BRL1.29 billion (USD730 million) in legal provisions in its fiscal fourth quarter, in relation to its acquisition of fellow operator Brasil Telecom (BrT). Oi says the move means it has now allocated a total of BRL2.53 billion in legal provisions, compared to the original sum it estimated it would need in the immediate wake of its buyout in April 2009. Oi’s announcement has prompted all companies in the Oi group to freeze the immediate incorporation of shares in BrT in order that their swap ration value is reassessed. In the takeover, Oi handed over a total of BRL5.37 billion for 61.2% of common shares in BrT’s parent company Brasil Telecom Participacoes.

Brazil, Brasil Telecom (BrT), Oi