Bondholders of Oi SA , Brazil's most indebted phone carrier, approved the sale of its Portuguese operation to Altice SA as long as the cash is used to pay down debt or consolidate the telecommunications industry.The agreement clears the way for Oi to explore a possible merger with or joint takeover of rival wireless carrier TIM Participa��es SA, whose executives are meeting with officials in Brazil this week, two sources have told Reuters.Oi said in a late Monday securities filing that its bondholders also demanded that the company forego a dividend this year and next and that it limit gross debt in relation to its operating profit.Bondholders pushed for Oi to keep gross debt below 4.5 times its earnings before interest, taxes, depreciation and amortization. However, Oi said that due to the deal with Altice, it would need a higher gross debt limit of six times EBITDA this year.
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 fell by 10.71% or $-0.3/share to $2.50. In the past year, the shares have traded as low as $0.40 and as high as $18.50. On average, 2135210 shares of OIBR exchange hands on a given day and today's volume is recorded at 6661678.
Shares of OIBR-C fell by 10.92% or $-0.32/share to $2.61. On average, 0 shares of OIBR-C exchange hands on a given day and today's volume is recorded at 42624.
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