Portugal Telecom, 34% shareholder in Mobile Telecommunications Limited (MTC) Namibia, has this week announced that it has signed the necessary contracts to seal the purchase of a 22.38% minimum direct and indirect stake in Brazil's main fixed-line phone carrier Oi for US$4.98 billion (approximately N$35 billion).
The deal, drafted last July, effectively means the return of Portugal Telecom as a major player to fast-growing Brazil after it sold its stake in Brazil's top mobile firm Vivo to Spain's Telefonica for 7.5 billion euros (approx. N$75 billion) last year.
"PT informs that it has signed the definitive sales and purchase, subscription and shareholders agreements with Oi and its controlling shareholders. The Oi transaction is expected to close up to the end of March 2011," PT said in a statement. Under the terms of the deal, the Portuguese operator gains control of 12.07% of Telemar Participacoes, part of Oi's business, as well 35% stakes in the AG and LF units.
Oi provides Internet access, mobile, fixed-line and pay-television services. It had a 19.4% share of the country's wireless market in December, while market leader Vivo had 29.7%, according to Brazil's telecommunications regulator. Madrid-based Telefonica bought Portugal Telecom's stake in a joint venture to gain full control of Vivo.
PT also said that Oi - Brazil's largest fixed-line phone company - intended to take a stake of up to 10% in the Portuguese company.
The parties have also agreed on the rearrangement of CTX - the controlling entity of contact centre Contax - and the merger of Contax with Portugal Telecom's Dedic/GPTI call centre and business outsourcing operation, to create synergies for shareholders, PT said.
Portugal Telecom's 34% shareholding in MTC Namibia was acquired in 2006 in a deal worth N$1.34 billion at the time, while the Namibian government retains the remainder of the stake through Namibia Post and Telecommunications Holdings (NPTH).
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MTC (Mobile Telecommunications Limited) was established in 1995 as a joint venture between Namibia Post and Telecommunications Holdings (NPTH), Telia and Swedfund. During May 2004, NPTH concluded a deal that saw it hold 100% of the shares in MTC by acquiring the 49% held by Telia Overseas AB and Swedfund International AB. During 2006 the sale of 34% of MTC shares to Portugal Telecom was concluded for N$1.34 billion while the Namibian government retains the remainder of the stake through NPTH.
MTC currently covers 98% of the population of nearly 2 million citizens, with more than 650 base stations and repeaters and offers a dual band 900/1800MHZ. The company also expanded its cellular coverage to all major towns in Namibia, including the major arterial roads. The company's 3G HSDPA+ Network allows for a download speed of up to 7.2Mbps in Namibia's major towns. It further runs two modern MSC's (mobile switching centre) in Windhoek and Oshakati with capacity to accommodate rapidly rising number of customers of over 1.5 million active users. MTC also operates the only full service customer contact centre in Namibia dealing with service queries ranging from telephony, SMS, fax, GPRS, data, voicemail and 3G/HSDPA. A staff of 367 persons serves a diverse market of both pre- and post-paid subscribers.
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