Portugal Telecom has signed the definitive sale and purchase, subscription and shareholders agreements with Oi and its controlling shareholders. The announcement follows PT's investment in and the strategic partnership with Oi, on 28 July 2010, and the extension of the validity of the memorandum of understanding, on 30 October 2010. The key transaction terms have been maintained in accordance with the strategic nature of this investment, namely minimum direct and indirect economic stake in Oi of 22.38 percent for a cash disbursement of BRL 8.32 billion, and significant corporate governance rights to be attributed to PT, resulting in the proportional consolidation of its direct and indirect stake in TmarPart (25.6%). PT thus gains control of 12.07 percent of Telemar Participacoes, part of Oi's business, as well as 35 percent stakes in the AG and LF units. The deal also involves a capital increase of up to BRL 12 billion by Oi units TNL and TMAR each. The Oi transaction is expected to close by the end of March.
