Shareholders of Brazilian telecoms group Telemar Participacoes, which markets Oi-branded services in the country through Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste, have agreed a plan to simplify the firm’s organisational structure, allowing its management to resume networks investments and set up a new dividend policy. In August last year the operating units’ respective boards approved a merger plan to create a single entity that will be Brazil’s second largest fixed and mobile operator by revenue. Under the plan, Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste will be merged into a single company that will trade under the name Oi SA. Bloomberg reports that shareholders of the three firms submitted their votes in separate meetings today in a fourth attempt to alter the structure of the group. Minority shareholders had vetoed the three previous proposals. It is understood that Brazil’s securities regulator, CVM, this time rejected all ten complaints registered by minority investors and allowed controlling shareholders to vote.
Following the restructuring, the three telcos, which between them count seven different classes of shares, will be replaced by Oi, which will have two types of shares traded on the BM&FBovespa SA exchange in Sao Paulo and the New York Stock Exchange. The new enlarged Oi will announce its new investment plan and its new dividend policy on 17 April, chief executive officer Francisco Valim said in a conference call with journalists. Oi’s board hopes the restructuring will realise BRL100 million (USD58.6 million) of savings per annum.