Portugal Telecom and Telefónica to jointly sell their equity stakes in Moroccan carrier

September 2, 2009

1 Min Read

LISBON -- Portugal Telecom, SGPS, S.A. (Portugal Telecom) announces that it has entered into a definitive agreement, together with Telefónica, S.A. (Telefónica), for the joint sale of their equity stakes in Médi Telecom S.A. (Méditel), each representing 32.18%, together with its outstanding shareholder loans, to the local shareholders of Méditel, FinanceCom, S.A., RMA Watanya, S.A. and Fipar Holding.

This sale has been approved by the Board of Directors of PT and is conditional upon the approval of Agence Nationale de Règlementation des Télécommunications (ANRT), the Moroccan telecommunications regulator.

Portugal Telecom will receive total proceeds of Euro 400 million.The transaction assumes an enterprise value (EV) of Euro 1,619 million for 100% of Méditel and implies an EV/EBITDA multiple of 8.4x for the last twelve months (LTM) EBITDA.

Portugal Telecom SGPS SA (NYSE: PT)

Telefónica SA (NYSE: TEF)

Médi Télécom S.A. (Méditel)

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