Oi announces material fact of step-up in basis of assets arising from Brasil Telecom S.A.'s acquisition of control of Telemar Norte Leste S.A. PR Newswire RIO DE JANEIRO, April 26, 2013 RIO DE JANEIRO, April 26, 2013 /PRNewswire/ -- Oi S.A. ("Oi") and Telemar Participacoes S.A. ("Telemar Participacoes"), in compliance with article 157, paragraph 4, of Law No. 6,404/76 and pursuant to CVM Instruction No. 358/02, inform their shareholders and the market in general that, in response to the formal consultation that Oi submitted to the Brazilian Securities and Exchange Commission (Comissao de Valores Mobiliarios – CVM) ("CVM") to confirm the most appropriate accounting treatment for the step-up in basis of assets arising from Brasil Telecom S.A.'s acquisition of control of Telemar Norte Leste S.A. as part of the corporate reorganization that was approved on February 27, 2012 ("Corporate Reorganization"), as reflected in Oi's individual and consolidated financial statements as of and for the year ended December 31, 2012 previously filed with the CVM, Oi was informed by CVM, in a letter received on this date, that on April 24, 2013, the Board of Directors of CVM unanimously decided to accept Oi's position that the reversal of the step-up in basis recorded by Oi (in the total amount of R$12,849 million as of December 31, 2012), and the recognition of such amount in Telemar Participacoes' financial statements, is the most appropriate accounting treatment for such event. Subject to the conclusion of the necessary accounting and auditing work, Oi anticipates that the reversal of the step-up in basis will reduce Oi's the depreciation, amortization and write-off of property, plant and equipment expenses by R$1,436 million for the fiscal year ended December 31, 2012, causing an increase in adjusted net income for such year of R$948 million. The table below shows the principal impacts on Oi's accounting records as a result of these adjustments. As ofand for the year ended December31, 2012 Reversal of Step-Up in Reclassification of Reported Basis and Deferred Taxes Other Deferred Taxes Adjusted Balance and Social Contribution and Social Balance Contribution (inmillions of reais) Assets Current 21,145 — — 21,145 Noncurrent 56,647 -12,849 4,135 47,933 Total 77,792 -12,849 4,135 69,078 Liabilities Current 17,067 — — 17,067 Noncurrent 40,898 -4,369 4,135 40,664 Shareholders' 19,827 -8,48 — 11,347 Equity Total 77,792 -12,849 4,135 69,078 Net Income 837 948 — 1,785 Oi will file with the CVM a restatement of its financial statements as of and for the year ended December 31, 2012, as well as its quarterly financial statements. Rio de Janeiro, April 25, 2013. Alex Waldemar Zornig Investor Relations Officer Oi S.A. Pedro Jereissati Investor Relations Officer Telemar Participacoes S.A. Oi S.A. Corporate Taxpayers' Registry (CNPJ/MF) No. 76.535.764/0001-43 Board of Trade (NIRE) No. 3330029520-8 Publicly-Held Company Telemar Participacoes S.A. Corporate Taxpayers' Registry (CNPJ/MF) No. 02.107.946/0001-87 Board of Trade (NIRE) No. 3330016601-7 Publicly-Held Company Tickers: OIBR3,OIBR4 SOURCE Oi S.A. Contact: Media Contact: Patricia Frajhos, +55-21-3131-1315
Oi announces material fact of step-up in basis of assets arising from Brasil Telecom S.A.'s acquisition of control of Telemar
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