Oi SA boss would consider further consolidation in Brazil, post-PT merger

21 Nov 2013

Brazilian-owned telecoms carrier Oi SA would be open to discuss further consolidation ideas in the local market following its ongoing merger with Portugal Telecom (PT), so says its CEO Zeinal Bava in an interview reported by Bloomberg. Speaking during an investor conference in Barcelona yesterday, the executive said: ‘The industry is in agreement that consolidation is something that improves returns while at the same time allows telcos to be able to continue to invest in beefing up the network’. Bava took over at Oi SA in June this year and last month his company agreed to merge with PT to create a trans-Atlantic carrier with almost USD17 billion in revenue. However, the CEO said that in the instance of another merger and acquisition deal he would not rule out a further capital increase in the future, ‘depending on the size of a transaction and the funding needs’.

The official says he is looking to reduce Oi SA’s annual investments and focus on efficiency. The Brazilian carrier invested BRL1.5 billion (USD660 million) in the three months ended 30 September 2013, compared with BRL2 billion in the same period a year ago. Bava says he currently has three main priorities to strengthen the group: ‘We need to correct the cash-flow profile; we need to consolidate the business model and boost productivity; and we need to continue to grow in the Brazilian market, where there are huge opportunities.’

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