RIO DE JANEIRO, Oct. 30, 2015 /PRNewswire/ -- Oi S.A. ("Oi" or
"Company", Bovespa: OIBR3, OIBR4; NYSE: OIBR and OIBR.C), in
accordance with Art. 157, paragraph 4 of Law No. 6,404/76, informs
its shareholders and the market in general that, on October 28, 2015, after having evaluated the
exclusivity proposal for the potential transaction with the purpose
of making possible a consolidation of the Brazilian
telecommunications sector involving a potential business
combination with TIM Participacoes S.A. ("TIM Participacoes"),
which was delivered by LetterOne Technology (UK) LLP ("L1
Technology") and disclosed by Oi in the Material Fact dated
October 26, 2015, Oi sent a letter to
L1 Technology , containing an exclusivity counterproposal, by which
Oi and L1 Technology would grant each other a mutual right of
exclusivity for a period of seven (7) months from October 23, 2015, with respect to, primarily,
business combinations involving companies or assets in the
Brazilian telecommunications sector.
Oi has received confirmation that L1 Technology agrees with all
the terms of the counterproposal. As a result, Oi and L1 Technology
are bound by exclusivity for the period of seven (7) months from
October 23, 2015.
If the transaction is completed, we expect it would lead to a
reduction in the leverage of Oi, becoming a more robust player, and
would lead to the generation of important synergies and economies
of scale, promoting value generation for all of our shareholders. A
potential business combination of Oi and TIM Participacoes should
result in the creation of a more complete and well-positioned
telecommunications operator that would be able to compete against
global players already operating in Brazil. Customers should
benefit from the resulting strengthening of the Company.
The Company will maintain its shareholders and the market
informed with respect to any events related to the foregoing.
Flavio Nicolay Guimaraes
Chief Financial Officer and Investor Relations Officer
Oi S.A.
Special Note Regarding Forward-Looking
Statements:
This communication contains forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 and Brazilian applicable
regulation. Statements that are not historical facts,
including statements regarding the beliefs and
expectations of Oi, business strategies, future synergies and cost
savings, future costs and future liquidity are forward-looking
statements. The words "will," "may," "should," "could,"
"anticipates," "intends," "believes," "estimates," "expects,"
"forecasts", "plans," "targets," "goal" and similar expressions, as
they relate to Oi or its management, are intended to
identify forward-looking statements. There is no guarantee
that the expected events, tendencies or expected results will
actually occur. Such statements reflect the current views
of Oi's management and are subject to a number of risks and
uncertainties. These statements are based on many
assumptions and factors, including general economic and market
conditions, industry conditions, corporate approvals, operational
factors and other factors. Any changes in such assumptions or
factors could cause actual results to differ materially from
current expectations. All forward-looking
statements attributable to Oi or its affiliates, or persons
acting on their behalf, are expressly qualified in their entirety
by the cautionary statements set forth in this paragraph.
Undue reliance should not be placed on
such statements. Forward-looking statements speak
only as of the date they are made. Except as required under the
Brazilian and U.S. federal securities laws and the rules and
regulations of the CVM, the SEC or of regulatory authorities in
other applicable jurisdictions, Oi and its affiliates do not have
any intention or obligation to update or to publicly announce the
results of any revisions to any of the forward-looking
statements to reflect actual results, future events or
developments, changes in assumptions or changes in other factors
affecting the forward-looking statements. You are advised,
however, to consult any further disclosures Oi makes on related
subjects in reports and communications that Oi files with the
SEC.
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/oi-sa-material-fact--execution-of-an-exclusive-agreement-for-a-potential-transaction-that-enables-the-consolidation-of-the-sector-300169482.html
SOURCE Oi S.A.
