Africa’s richest woman bids for Portugal Telecom
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.