Billionaire Plans to Buy Oi Portuguese Assets
Published By : 09 Dec 2014 | Published By : QYRESEARCH
Patrick Drahi has drawn an agreement to purchase Oi SA’s phone assets in Portugal for almost US$9.1 billion. This move will allow the billionaire to expand his telecom venture inside Europe.
The board of members at Oi approved the sale of PT Portugal’s revenue in the immediate future. Only when the transaction is completed will the price for the Portuguese and Hungarian assets be adjusted.
Marking the second major deal of 2014 by Franco-Israeli billionaire Patrick Drahi, the Oi asset takeover will bring their annual sales to Altice and its businesses, totaling it up to 15 billion Euros. The European carriers aim to merge in order to reduce costs and recover earnings. The current purchase also makes Altice one of the stronger competitors to NOS SGPS SA, which is the largest cable TV provider in Portugal and a Vodafone Group wireless provider.
The funds that Oi will receive will help the telecom firm take care of its debts as well as consolidate its presence in Brazil, the greatest telecoms market in South America. Oi has decided to put off its aim to become a Trans-Atlantic carrier company for a while, and has announced its acquisition of the assets in Portugal in 2013 through a merger with Portugal Telecom.
The two firms began talks in exclusivity on 1 December. Altice had raised its previous offer, overtaking a bid by Apax Partners LLP, a rival company, along with Bain Capital. The board of members at Oi approved of the deal last week.