PT SGPS posts net loss of EUR289m in 2014; hints at ‘alternative structure’ for Oi tie-up

21 May 2015

Portuguese holding company Portugal Telecom SGPS (PT SGPS) has filed its 20-F report for the year ended 31 December 2014 with the US Securities and Exchange Commission (SEC). The Lisbon-based firm, which classifies its chief material asset as its direct and indirect 27.5% ownership stake (26.4% voting stake) in Brazilian telco Oi SA, reported a net loss of EUR289.2 million (USD321.5 million) for the twelve-month period ended 31 December 2014, compared to a profit of EUR388.0 million in 2013.

With reference to the ill-fated merger between the Portugal Telecom Group and Oi, PT SGPS notes: ‘The parties intend to implement a new alternative structure to the business combination that is expected to provide for, among other things, the simplification of Oi’s ownership structure through a corporate reorganisation of the various holding companies having direct and indirect shareholder interests in Oi (whereby, among other effects, we would hold directly the shares of Oi corresponding to its indirect interest), the listing of Oi’s shares on the Euronext Lisbon (in addition the New York Stock Exchange [NYSE], where Oi’s shares are already listed) and the migration of Oi to the Novo Mercado segment of BM&FBOVESPA [Sao Paulo-based stock exchange].’

However, to date, no such reduction in capital has been approved by PT SGPS’s board of directors or submitted to shareholders for approval.

Brazil, Portugal,Oi, Pharol (formerly Portugal Telecom SGPS [PT SGPS]),

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