French firm Altice’s drive to build an integrated cable-mobile footprint in Europe received a boost with the support of Oi’s board for the French company’s €7.4 billion offer for Portugal Telecom.
Meanwhile Oi’s ambition to be a transatlantic giant has retreated. Now its focus is on its domestic position.
However, before the deal closes, Altice still requires the backing of Portugal Telecom’s shareholders. No date has been set yet for a vote. Regulatory approval is also needed.
The €7.4 billion offer includes a €500 million consideration related to Portugal Telecom’s future revenue, Oi’s statement confirmed. The deal covers Portugal Telecom’s assets in Portugal but also Hungary, where it runs a low-profile Vsat operation called HDT which previously had received scant mention in discussions of the deal.
Not included in the Altice offer is the Portugese incumbent’s stakes in Africatel, Timor Telecom and Rio Forte Investments. Before the sale is closed, these assets will have to be separated off from the rest of Portugal Telecom in a corporate reorganisation.