Altice’s ambition progresses, with Oi’s backing

Altice’s Portugal Telecom ambition progresses, with Oi’s backing

09 DEC 2014

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.

The board of the Brazilian operator has backed the Altice bid for Portugal’s leading mobile operator and fixed incumbent. Earlier this year, Altice also bought SFR, France’s second operator.

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.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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