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Sunday, November 2, 2014

Altice says offers to purchase Portugal Telecom assets from Oi, (NYSE: OIBR)

Altice SA said it made a fully financed offer to purchase the Portuguese assets of Portugal Telecom from Oi SA. "These assets comprise the existing business of Portugal Telecom outside of Africa and excludes Portugal Telecom's Rio Forte debt securities, Oi treasury shares and Portugal Telecom financing vehicles," Altice said.It said the offer values the assets at an enterprise value of 7.025 billion euros ($8.78 billion) on a cash and debt-free basis, which includes a 400 million euros earn-out related to the future revenue generation of Portugal Telecom and a 400 million euros earn-out related to the future generation of operating free cash flow (EBITDA less Capex).The transaction net of financial debt and other purchase price adjustments would be financed by new debt and existing cash from Altice, Altice said.

Oi SA, formerly Brasil Telecom SA, is a Brazil-based holding company engaged in the provision of Switched Fixed-line Telephony Services (STFC) domestically and internationally. Shares of OIBR traded higher by 6.0% or $0.03/share to $0.53. In the past year, the shares have traded as low as $0.40 and as high as $1.97. On average, 11796500 shares of OIBR exchange hands on a given day and today's volume is recorded at 25960792.



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