Hi and Portugal Telecom sign agreement to unite activities

SÃO PAULO-(Updated at 10:28) Hi and Portugal Telecom have signed memorandum of understanding to merge their activities, reported the Brazilian operator in fact. With the merger, a company called CorpCo will be created, with the two companies acting as its subsidiaries. The Union will combine the activities and business developed by Oi in Brazil and Portugal Telecom in Portugal and Africa.
The prediction is that the new group has synergies of approximately $ 5.5 billion. According to the document, this economy will come from the increased scale of activities and earnings arising from the Union of two large telecommunications companies. The operation will be finalized in the first half of 2014.
The intention of the two is to list the CorpCo on the Novo Mercado of BM & FBovespa, on the New York Stock Exchange and Nyse Euronext Lisbon, the Lisbon stock exchange. The fact says that the capital of the new company will be sprayed and there won't be a shareholder or group of shareholders with a majority.
Hi and Portugal Telecom will be incorporated by the new operator. The exchange ratio between their actions will be of 1 to 1 of CorpCo in the case of Portuguese and Brazilian ordinary roles; and each 1.0857 Oi's preferred share will entitle to a new CorpCo.
With regard to the administrative structure, the CorpCo will have as President Zeinal Bava Bava. The Executive has already commanded the Portuguese group and currently occupies the Presidency of the Brazilian and Portugal Telecom's operations in its Christmas market.
The Board of Directors of the new company will be formed by 11 full members and 11 alternates. For your first training, was chosen José Mauro Mettrau da Cunha as President and Sitara Fusco as vice Grenadier. Mettrau headed the Hi soon after the departure of Francisco Valim, while presiding over the Council of Grenadier Portug al Telecom.
According to the fact of Hi, upwards of 100 million customers jointly. "The operation will allow the CorpCo to take advantage of the unique presence of Hi in Brazil and the experience of Portugal Telecom in the Portuguese market, enabling him thereby crystallizing opportunity for growth in convergence and mobility in Brazil."
In the midst of reorganization of Oi's controllers for the creation of CorpCo, the Portugal Telecom will cease to be a shareholder of call center company Contax.