Portugal Telecom SGPS, which part owns leading Brazilian operator Oi, said it is undervalued by a €1.2 billion bid from Angolan entrepreneur Isabel dos Santos, according to a statement made by the company’s board.
The dos Santos bid for PT SGPS was made last month. The company holds a 25.6 per cent stake in Oi.
In the complex structure of Oi/Portugal Telecom’s relationship, the Portuguese incumbent’s domestic assets are held by Oi (not PT SGPS), which earlier this week agreed to sell them to France’s Altice.
The dos Santos offer received short shrift from the board of Portugal Telecom SGPS, which said it failed to “reflect the intrinsic value of PT, including the value arising from the potential growth of Oi in the medium and long term resulting from the consolidation process in the Brazilian telecommunications market.”
The board’s statement was first reported by Reuters.
The board of PT SGPS can only express an opinion, while its shareholders actually vote for or against a bid. No date has been set for a shareholder vote on the dos Santos proposal.
Its shareholders must also vote on the Altice bid, which is supported by Oi’s board.