Brazilian telecommunications group Tele Norte Leste Participacoes S/A (TNE, TNLP4.BR), or Oi, and Portugal Telecom SGPS S/A (PT, PTC.LB) have formalized an industrial alliance that was announced at the end of last year, Oi said in a statement late Tuesday.

"In order to strengthen the capital structure of the Oi companies, the industrial alliance will result in Portugal Telecom's ownership, directly or indirectly, of at least 22.38% of Oi's shares on a fully-diluted basis through Portugal Telecom's investment of 8.32 billion Brazilian reais ($4.97 billion), without altering the current control structure of the companies," Oi said in a statement.

In addition, Oi plans a BRL12 billion share issuance to raise fresh capital. The major part of the share issue will be subscribed to by Oi's current controlling shareholders.

The purpose of the industrial alliance is to develop a global telecommunications platform that will allow for cooperation in diverse areas, Oi said.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071; rogerio.jelmayer@dowjones.com
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