Brazil’s Oi has received an offer from Apax and Bain funds with a value of €7.075 billion for assets in Portugal.
The proposal provides for an earn-out of 400 million on the basis of future revenue and other additional 400 million related to the generation of EBITDA. Investments Pt Portugal Africa, Pt Portugal debt or Rioforte not included in the funds offer.
On the table of the board of Oi there is already an offer from Altice, with the same structure, €7 billion to take over the activities of the Portuguese Portugal Telecom with the proposal of an earn-out of EUR 400 million related to the next generation of income, and another 400 million euro related to the generation of free cash flow from operations. In the case of Altice Africatel and Timor Telecom, the debt of PT Portugal and investment in Rio Forte Investments are not a part of the negotiation. Analysts said the offer could be an important element of debt reduction of Oi and go to support a possible offer by the latter for Tim Brasil (in consortium with Telefonica and America Movil).