January 29, 2019 |
Brazil's Oi said it has increased its capital by BRL4bn ($1.06bn) by selling shares to creditors who agreed to take equity stakes in the company in exchange for debt payments.
The telecommunications company issued 3.23m new shares to the so-called "backstop investors" for BRL1.24 each. Oi's share prices dropped 1.48% to BRL1.33 after the announcement.
Oi now has BRL32.5bn in capital stock, the company said in a securities filing.
Most of Oi's shareholders agreed in March last year to take equity
Brazilian telecom raises more than $1bn in capital from the sale of new shares