Telemar Unveils Plan to Untangle

Brazil’s Telemar, operator of the Oi brand, announced plans to streamline seven share classes from three listed companies into one listed company. One of Brazil’s more complex share structures had been further complicated by the 2008 acquisition of Brasil Telecom, and the company has long hoped to simplify it. “The reorganization’s objective is to simplify in a definitive way the shareholder structure and the Oi companies, cutting operational and administrative costs and increasing liquidity for all shareholders,” the company says. Under the plan, the shares of Telemar Norte Leste (TMAR) are to be incorporated into unlisted Coari Participacoes, which will in turn be incorporated into Brasil Telecom (BRT). Telemar Norte Leste (TNL) will also be incorporated into BRT, which will then change its name to Oi, S.A. The Telemar Participacoes holdco would control Oi, holding the shares not held by the market, leaving Oi as the only traded entity. The company hopes to complete the operation within six months, it says.