Angola's Isabel Dos Santos Launches Takeover Bid For Portugal Telecom

(RTTNews) - Isabel dos Santos, the daughter of Angola's President Jose Eduardo dos Santos, has made a takeover bid for Portugal Telecom, SGPS S.A. (PT) that values the target company at 1.2 billion euros, or $1.50 billion.

According to a filing posted on website of Portuguese securities regulator CMVM, Isabel Dos Santos has made the bid of 1.35 euros per share of Portugal Telecom through Lisbon-based Terra Peregrin Participacoes SGPS SA. The offer price represents an 11 percent premium to Portugal Telecom's closing stock price of 1.217 euros on November 7.

The bid is conditional on the acquisition of more than 50 percent of Portugal Telecom's shares and will not affect the planned merger between Portugal Telecom and Brazilian telecommunications company Oi SA (OIBR).

French cable and telecommunications provider Altice SA (ATCV.OB), on November 2, launched a binding, fully-financed offer to acquire the Portuguese assets of Portugal Telecom from Oi.

The offer values the assets at an enterprise value of 7.025 billion euros or $8.8 billion, on a cash and debt free basis. The valuation includes a 400 million euros earn-out related to the future revenue generation of Portugal Telecom and a 400 million euros earn-out related to the future generation of operating free cash flow.

The Portuguese assets comprise the existing business of Portugal Telecom outside of Africa. However, it excludes Portugal Telecom's Rio Forte debt securities, Oi treasury shares and Portugal Telecom financing vehicles.

PT closed Friday's trading at $1.52, up $0.03 or 2.01 percent on a volume of 581,089 shares.