Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,479.31 61.78 0.43%
TOPIX 1,169.37 2.78 0.24%
HANG SENG 22,760.24 64.23 0.28%

Oi announces material fact of step-up in basis of assets arising from Brasil Telecom S.A.'s acquisition of control of Telemar



 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 of and for the year ended December 31, 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
              (in millions 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
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement