Africa’s rich­est woman bids for Por­tu­gal Tele­com

Lesotho Times - - Business -

NEW YORK — A firm con­trolled by a daugh­ter of An­gola’s pres­i­dent is of­fer­ing €1.2 bil­lion (M16.4 bil­lion) to take over Por­tu­gal Tele­com SGPS, a hold­ing company that owns a stake in Brazil­ian tele­com op­er­a­tor Oi SA .

Terra Pere­grin, con­trolled by Is­abel dos San­tos, said late Sun­day it would pay €1.35 per share of Por­tu­gal Tele­com on the con­di­tion that it se­cure more than 50 per­cent of the company’s shares. The price is a small pre­mium over the company’s clos­ing price Fri­day on the Lis­bon stock ex­change.

The of­fer for the company is part of a com­plex op­er­a­tion in a pro­gress­ing con­sol­i­da­tion in the Brazil­ian tele­com in­dus­try, which af­fects cer­tain Euro­pean coun­tries.

In ad­di­tion to its 25.7 per­cent stake in Oi — part of a 2013 merger be­tween the two firms —Por­tu­gal Tele­com holds €900 mil­lion in debt se­cu­ri­ties is­sued by Rio­forte In­vest­ments SA, a unit of Por­tuguese con­glom­er­ate Espírito Santo In­ter­na­tional SA, which has de­faulted on its debts. It is un­clear how much value those se­cu­ri­ties would have after Espírito Santo’s liq­ui­da­tion is com­pleted.

Por­tu­gal Tele­com trans­ferred its fixed and mo­bile tele­phony as­sets to Oi when the two firms merged late last year.

Sep­a­rately, at the start of Novem­ber, Oi re­ceived a pro­posal from Lux­em­bourg-based Altice SA to buy PT Por­tu­gal — the op­er­a­tor’s Por­tuguese arm — for around €7 bil­lion.

If Terra Pere­grin’s bid suc­ceeds, it might com­pli­cate Oi’s plans to sell the Por­tuguese telecom­mu­ni­ca­tions as­sets, since Por­tu­gal Tele­com has veto rights on any such sale. The unit sought by Ms. Dos San­tos owns an op­tion to buy a small ad­di­tional stake in Oi.

In a Sun­day fil­ing with Por­tu­gal’s mar­ket reg­u­la­tor, Terra Pere­grin said it would al­low Por­tu­gal Tele­com’s planned merger with Oi to pro­ceed, though the timetable “may suf­fer some changes.”

Oi said in a reg­u­la­tory fil­ing in Brazil on Mon­day that any change in the terms of the merger would be “un­timely.”

IS­ABEL dos San­tos is the daugh­ter of An­gola’s Pres­i­dent José Ed­uardo dos San­tos.

Newspapers in English

Newspapers from Lesotho

© PressReader. All rights reserved.