Portugal Telecom has postponed its crucial shareholder meeting to discuss the sale of its domestic assets until 22 January, after the stock market regulator requested more information on the transaction.
The meeting, at which shareholders will discuss the proposed €7.4 billion sale of the telco’s Portuguese operations to France’s Altice, was due to take place on Monday.
However, there was doubt over whether shareholders had access to enough information on the deal to be able to make an informed decision. On Friday the Portuguese Securities Market Commission, or CMVM, said Portugal Telecom had failed to provide the information it had requested about the deal and as such suspended trading in its shares.
On Monday the CMVM said it had lifted the suspension.
Meanwhile, Brazil’s Oi said it supported the postponement of the meeting, but insisted that it believes all the relevant information has been passed to the CMVM and therefore to shareholders.
The ownership structure of Oi and Portugal Telecom has become increasingly complicated since the pair agreed to merge in late 2013.
A controversial investment in Rio Forte Investments debt threatened to derail the merger last summer, but the companies renegotiated, leaving Portugal Telecom as a 25.6% shareholder in the enlarged Oi. With the merger process still ongoing, Oi in late November agreed to sell the group’s Portuguese assets to Altice.
It is too early to speculate on the future of that deal, but any delay in carrying out the transaction is bad news for Oi, which plans to use the proceeds from the sale to shore up its position in Brazil. There are a number of options for consolidation in the Brazilian mobile market , but the most likely outcome would be for Oi to acquire TIM Brasil, possibly in conjunction with one or more of its local rivals, America Movil and Telefonica.
Oi on Monday reiterated its intentions.
"As a result of the [Altice] transaction, Oi will be able to participate in the Brazilian telecommunications consolidation process," it said.
