Shareholders of Brazilian carrier Oi have approved a plan to simplify the company’s holding structure and shares. Telemar Participacoes, which markets Oi-branded services in the country through Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste, have agreed to resume investments and establish a new dividend policy.
Follow RCR Wireless News – Americas on Twitter, Facebook and subscribe to our free periodic newsletters
The broker company Ativa Corretora analysed the move as positive. “After several trials, Oi has reached the approval of its reorganization, which might bring synergies of US $58.7 million (R$ 100 million), as well as more transparency to investors.”
Oi is Brazil’s second-largest telecommunications company by revenue.
Under the plan, Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste will be merged into a single company that will trade under the name Oi SA, listed on stock exchanges in BM&FBovespa SA exchange in Sao Paulo and the New York Stock Exchange, with common and preferred shares. It will be simpler than before, when there were three companies with seven different classes and types of shares.
Oi SA will announce its new investment plan and its new dividend policy on April 17.
Telemar Norte Leste SA, Brasil Telecom SA and Tele Norte Leste shareholders submitted their votes in separate meetings, after minority shareholders had vetoed the three previous proposals.
