Brazil's Telemar Participacoes, the service provider that oversees Oi-branded services via Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste, are proceeding with their plan to simplify the service provider's structure.
With this new structure in place, the management team will be able to start making network investments again and create a new dividend policy.
Last August, each of the division's boards green lighted a plan to create a common company that will become the country's second biggest wireline and wireless operator in terms of revenue.
Per the original plan, Brasil Telecom, Tele Norte Leste Participacoes and Telemar Norte Leste will be merged into a single company and will trade on the BM&FBovespa SA exchange in Sao Paulo and the New York Stock Exchange under the name Oi SA.
"It is positive for the group, as it simplifies the structure," Fator SA Corretora de Valores analyst Jacqueline Lison, said in Bloomberg article. "Now the company can focus on the operational performance."
While the minority shareholders had shot down three previous proposals, CVM, Brazil's securities regulator, dismissed the 10 complaints made by minority investors and allowed controlling shareholders to vote.
For more:
- Bloomberg has this article
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