Portugal Telecom Purchase Bid by Angolan Presidents Daughter

Published Date : Nov 11, 2014

The daughter of Angola’s president, Isabel dos Santos, recently made a US$1.5 billion bid for Portugal Telecom SGPS SA. The company currently owns a minority stake in the carrier that was made in a merger with Brazilian telecom company Oi SA.

A commonly known investor, Dos Santos is offering 1.35 Euros per share through Terra Peregrin Participacoes SGPS SA, a Lisbon based firm. The price is 11 percent higher than the stock’s closing value on November 7. The conditions put down for the acquisition include an acceptance level of over 50 percent along with no major changes including sale of strategic assets. Portugal Telecom has risen by almost 15 percent in Lisbon.

Portugal Telecom however no longer controls the operating assets of the nation’s previous phone monopoly after its merger with the biggest landline carrier in Brazil. Oi SA is selling assets in Africa and Portugal. It is also considering an offer worth 7 billion Euros that was made this month by Altice SA’s Patrick Drahl, for the company’s Portuguese assets.

Oi made a statement from Rio de Janeiro that it considers any changes made to the agreement terms with Portugal Telecom as inopportune.

A year ago, Oi and Portugal Telecom agreed upon a collaboration to establish a carrier with 100 million customers in a bid to compete against America Movil SAB and Telefonica SA. The firms renegotiated the terms in July to offer a smaller stake to Portugal Telecom in the combined entity. This came after it was revealed that the Lisbon based partner was holding a short term debt of 897 million Euros. The debt was defaulted by Rioforte Investments SA.