Oi plans share offering

21 Feb 2014

Brazilian telecoms company Oi plans to raise around BRL14 billion (USD5.9 billion) in a share offering as part of its merger process with Portugal Telecom (PT), Reuters reports, citing a company filing to the national securities regulator. PT will subscribe at least BRL7 billion in Oi shares in the operation, with the Brazilian firm offering ordinary and preferred shares, including American Depositary Receipts. Pricing date has been set for 16 April, and the settlement is expected to take place on 23 April. The two firms announced last October that PT would be merged into Oi in order to strengthen the Brazilian firm and simplify its ownership structure, while also helping to shore up PT’s operations in its domestic market. The combined entity will have more than 100 million subscribers in Europe and Latin America, with annual revenues of around USD19 billion.

Earlier this week Oi posted net annual revenue of BRL28.422 billion for 2013, an increase of 1.0% year-on-year, as growth in residential (up 3.3% year-on-year) and personal mobility (2.1%) turnover offset a 32.7% decline in value added service and other revenue. The company posted EBITDA of BRL8.873 billion for the year, compared to BRL8.873 billion in 2012.

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