Boston, MA 09/18/2014 (wallstreetpr) – Fixed-line telephony services provider, Oi SA (ADR) (NYSE:OIBR) disclosed that its Board of Directors has been authorized to take steps to sell its holdings in Africatel Holdings B.V. representing 75% of the Africatel and or its assets capital stock.
Sale Process
Oi SA (ADR) (NYSE:OIBR) stated that it would lead the process of sale since it believes that it was in the interest of its shareholders, as well as, Africatel to optimize the value of their investments, its statement said. Therefore, it was executing the process of sale in a cordial manner with Helios Investors L.P. affiliate, Samba Luxco S.a.r.l, which was holding the rest of 25% stake in Africatel.
Oi said that it was committed to working closely with its local partners in all the operating companies that Africatel has invested to make sure a smooth ownership transition. Despite its current efforts, Africatel GmbH, an indirect subsidiary of Oi, that holds its investments in Africatel directly, was served with a letter by Samba Luxco indicating their intention to exercise its put option to divest its stake in Africatel following the shareholders deal among the Africatel shareholders.
Put Option Triggered
Samba Luxco’s notice indicated that the put option was triggered as a result of an indirect transfer of shares of Africatel to Oi SA (ADR) (NYSE:OIBR) subsidiary as part of its capital raising exercise it has concluded in May. Earlier, Africatel shares were held by Portugal Telecom SGPS S.A.
However, Oi rejected the claims made by Samba Luxco pointing out the disclosure of risk factors set forth in the offer documents in relation to its capital increase exercise. The company is ready to dispute the claims of the put option by Samba Luxco and believes that it could lead to arbitration to resolve the issue.
Oi said that it would plan its efforts centered on the sale of Africatel or its assets and expected that such a successful achievement would render the arbitration process a meaningless one.
