Material Fact - LetterOne Technology updates on talks over proposed merger between Oi and TIM in Brazil

Feb 25, 2016, 07:38 ET from Oi S.A.

RIO DE JANEIRO, Feb. 25, 2016 /PRNewswire/ -- Oi S.A. ("Oi", Bovespa: OIBR3, OIBR4), in accordance with Art. 157, paragraph 4 of Law No. 6,404/76 and in furtherance with the Material Facts disclosed on October 26 and 30, 2015, hereby informs its shareholders and the market in general that LetterOne Technology (UK) LLP ("L1 Technology") has issued a press release stating that it has been informed by TIM that TIM does not wish to enter into further discussions about a business combination with Oi in Brazil.

L1 Technology's press release stated that, without TIM's participation, L1 Technology can't now proceed with the proposed transaction as previously envisaged.

The full version of the Press Release disclosed by L1 Technology is available at the Company´s website. 

Given this information, Oi will evaluate the impact of this announcement on the possibility of consolidation of the Brazilian market.

Oi will continue to undertake its efforts towards operational improvements and business transformation focusing on austerity, infrastructure optimization, revisions of procedures and commercial actions.

Oi will maintain its shareholders and the market informed with respect to any relevant event related to the foregoing.

Flavio Nicolay Guimarães
Chief Financial Officer and Investor Relations Officer
Oi S.A.