Tuesday , 11 December 2018
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Oi picks Altice for exclusive talks on PT Portugal sale

Oi picks Altice for exclusive talks on PT Portugal sale

Altice announced that it has entered into an exclusivity agreement with Oi to negotiate the purchase of the Portuguese assets of Portugal Telecom. Altice’s fully financed, binding offer values Portugal Telecom at an enterprise value of EUR 7.4 billion on a cash- and debt-free free basis. The bid includes EUR 500 million based on future revenue generation at Portugal Telecom. 

The transaction, net of financial debt, accrued post-retirement liabilities and other purchase price adjustments, will be financed by new debt and existing cash from Altice. In the case of a final agreement, the transaction will require corporate approvals and will be subject to standard regulatory approval. The companies have 90 days to agree a final offer. 

Altice won the exclusive talks by raising its bid from an initial EUR 7.025 billion, including a EUR 400 million earn-out. This was later topped by a bid from Apax Partners and Bain Capital worth EUR 7.075 billion. The private equity firms reportedly struggled to find a local partner to join their consortium, thought key to winning the backing of Oi and PT management. Oi also pushed both bidders to increase their offers. 

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