Oi swaps Namibia telco stake for Africatel holding

Brazilian operator announces new deal with Samba Luxco to bring lengthy shareholder dispute to an end.

Oi has agreed a share swap deal with investment partner Samba Luxco that will see it up its stake in African telco holding company Africatel, but cede its entire 34% holding in MTC Namibia.
Under the terms of the arrangement, Oi increases its holding in Africatel to 86% from 75%, leaving Samba Luxco, an affiliate of Helios Investors, with a 14% stake. Meanwhile, Samba Luxco takes Africatel's stake in MTC.

Assets still held by Oi via Africatel include stakes in Angola's Unitel, Cabo Verde Telecom, and CST in São Tomé and Príncipe.
The deal settles on ongoing dispute with Samba Luxco, which almost two years ago claimed the right to exercise a put option on its stake in Africatel as a result of Oi's plan to acquire Portugal Telecom. Arbitration commenced at the end of that year and proceedings were ongoing, despite Oi's later move to sell Portugal Telecom to Altice.

The new agreement, which was drawn up late last week, brings proceedings to an end and "release[s] Oi's subsidiaries from all past and present claims relating to alleged breaches of the Africatel BV shareholders' agreement dated 13 August 2007," Oi said, in a statement.
However, the deal still requires certain regulatory and antitrust approvals before it can be completed, Oi said.

Source: Total Telecom