Oi to restructure, bringing all subsidiaries under single entity

Tuesday, May 24, 2011

Telemar Participações, the controlling shareholder of Brazilian telco Oi (NYSE: TNE), plans to bring together all of Oi's units in a move that looks to make the corporate structure more transparent, the telco announced on its website.

Bringing Oi units Tele Norte Leste Participações, Telemar Norte Leste, Coari Participações and Brasil Telecom under one structure will "definitely simplify the corporate structure and governance of the Oi Companies, by eliminating administrative and operational costs and increasing liquidity for all shareholders," according to the statement.

The units are to be reorganized under a single company, Brasil Telecom, which will be renamed as Oi SA and will be the only firm listed on the São Paulo and New York stock exchanges.

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Currently, Oi has three publicly traded companies with seven different classes and types of traded shares, according to local news agency Agência Estado.

Oi expects shareholders to approve the proposed restructuring in about six months, which is subject to approval from local telecoms regulator Anatel.

Use this link to see the full material fact statement.