PT snaps up bigger 25.28% stake in Oi

29 Mar 2011

Bloomberg writes that Portugal Telecom (PT) has purchased a 25.28% stake in Brazilian telecoms group Telemar Norte Leste (Oi) for BRL8.32 billion (USD5 billion), taking a bigger stake in the group than it had originally planned to. The Portuguese giant’s stake has been built up from direct investments in Oi and through indirect purchases in its biggest shareholders, PT said in a statement. The transaction includes a 25.6% stake in Telemar Participacoes, the holding group that controls Oi, and is seen as core to PT’s bid to drive revenues by tapping into growth in demand for mobile and internet services in the Latin American country. Portugal Telecom moved to buy a stake in Oi in July 2010, after opting to sell its 50% stake in Brazil’s largest cellco Vivo Participacoes to joint venture partner Telefonica. On 26 January this year, PT announced it was looking to take at least 22% of Oi. It is understood the agreement includes a provision for Oi to acquire as much as 10% of the Portuguese operator.

Brazil, Oi, Pharol (formerly Portugal Telecom SGPS [PT SGPS]), PT Portugal (MEO)