June 29, 2017 / 2:37 PM / a year ago

UPDATE 1-Biggest Oi shareholders approve capital hike plan -paper

(Updates to say Oi representatives declined to comment)

SAO PAULO, June 29 (Reuters) - Oi SA’s two biggest shareholders approved a plan to raise 8 billion reais ($2.4 billion) by selling new shares as a way for the Brazilian wireless carrier to accelerate its exit from bankruptcy, newspaper Valor Econômico reported on Thursday.

Pharol SGPS SA and Société Mondiale Fundo de Investimento, which together hold about 35 percent of Oi’s voting capital, agreed to the plan in a Wednesday meeting, the report said, citing unnamed sources with knowledge of the transaction.

An official announcement could come in a matter of days, Valor said.

Media representatives for Oi declined to comment on the story.

Oi Chief Executive Officer Marco Schroeder told Reuters on June 9 that the company was working on a proposal to raise 8 billion reais from shareholders and investors. Under the plan, Oi would offer new stock to shareholders and, if some of them forgo the chance to subscribe, to other investors.

The Oi reorganization process, which began almost a year ago and remains Brazil’s largest bankruptcy protection case to date, has been marked by a series of disputes between creditors and shareholders over the fate of Brazil’s No. 4 wireless carrier. The government has threatened to intervene if Oi stakeholders fail to reach an agreement.

$1 = 3.29 reais Writing by Bruno Federowski; Editing by Lisa Von Ahn

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