[2019-05-22] Brazilian group Oi raises US$26.3 million through the sale of a stake in Cabo Verde Telecom

Source: Macauhub

Cabo Verde has paid US$26.3 million to repurchase the 40% stake owned by PT Ventures of Brazilian group Oi in the share capital of Cabo Verde Telecom, the government said in a statement released on Tuesday in Praia.

Following this deal, Cabo Verde Telecom is controlled by the shareholders National Institute of Social Security (INPS), with 57.9%, airport and air safety agency ASA, with 20%, the Cabo Verde state, with 3.4% and state post office Correios de Cabo Verde, with 0.7%. The remaining 18% is in private hands.

The signing on Tuesday of the sale and purchase agreement, in which INPS and ASA each accounted for half the shares, marks the end of the dispute between the State of Cabo Verde and PT Ventures over Cabo Verde Telecom, which has been ongoing since 2014.

Deputy Prime Minister and Finance Minister Olavo Correia said on the occasion that the signing is “an important moment for the country,” as it brings an end to the risks facing the country, one of which is “executive management of a company that is strategic for the future of Cabo Verde.”

The government statement said that these risks arise from the amendment of Decree-Law 7/2005, which opened up the telecommunications market, but also from the fact that the State unilaterally decided to take on the executive management of Cabo Verde Telecom, which affected the agreement between the two companies.

Correia also announced that the government intends to sell the stake that has now been repurchased to a strategic partner “which will have to pay more than US$26.3 million.”