Altice set to buy Oi's Portugal operations - sources

domingo 30 de noviembre de 2014 17:02 GYT

By Leila Abboud and Guillermo Parra-Bernal

PARIS/SAO PAULO Nov 30 (Reuters) - Telecoms group Altice SA has agreed to buy the Portuguese operations of Brazil's Grupo Oi for about 7.4 billion euro ($9.2 billion), two sources close to the deal said on Sunday.

Altice beat out a rival bid from private equity funds Apax and Bain, and will now add another country to its portfolio of cable and mobile companies in France, Israel, and the Dominican Republic among others.

Controlled by Franco-Israeli billionaire entrepreneur Patrick Drahi, Altice is fresh from completing its biggest acquisition last Thursday via subsidiary French cable company Numericable 's buy of mobile operator SFR.

One of the sources said the announcement expected shortly will be that Oi and Altice will enter three weeks of exclusive talks and due diligence towards finalising the accord.

The deal with Oi marks the effective unwinding of Oi's ill-fated merger with Portugal Telecom, which hit the rocks earlier this year when the Portuguese side lost hundreds of millions of euros in the country's Espirito Santo banking scandal.

Altice already owns two small cable companies in Portugal and buying the former state-owned monopoly Portugal Telecom would vault it into prime position to compete with Vodafone and Optimus.

Altice said on Nov. 3 it had bid for the PT assets, valuing them at an enterprise value of 7.025 billion euros on a cash and debt-free basis. The original bid included a 400 million euros earn-out related to the future revenue generation of Portugal Telecom and a 400 million euros earn-out related to future operating free cash flow.

The sale of Oi's Portuguese assets could propel the Brazilian company's effort to team up with rivals in its home turf to buy and then break up TIM Participacoes SA, the nation's No 2 wireless carrier.   Continuación...