SAO PAULO, Nov 13 (Reuters) - Brazilian telecommunications firm Oi SA is seeking a better offer from two bidders for its Portuguese business, newspaper Folha de S.Paulo said on Thursday.
Private equity firms Bain Capital and Apax Partners have made an offer valued at 7.075 billion euros ($8.82 billion) to buy the PT Portugal operating business of Portugal Telecom from Oi, rivalling a slightly lower offer valued at 7.025 billion euros from European telecoms group Altice.
But both offers include similar “earn-out” clauses which pay up to 800 million euros of the price only if the Portuguese business hits certain performance targets for revenue generation and profits.
Oi is now asking for a guaranteed pay-out of at least 7 billion euros, free of any such earn-out discounts, Folha said.
A spokeswoman for Oi declined to comment.
Oi is considering selling the PT Portugal assets to reduce its debt of over $18 billion and effectively unwinding a protracted merger of Oi and PT Portugal’s former owner, Portugal Telecom.
Oi is also expected to use any proceeds from selling Portuguese assets to strengthen its hand in the consolidation of the Brazilian telecoms market.
$1 = 0.8020 euros Reporting by Asher Levine; Editing by Greg Mahlich