Sunday, August 9, 2015

“There is clear identification of all with great strategic project Hi” – Economic

The ‘chairman’ of Pharol admits that the Brazilian’s operating performance Hi is key to creating value for its Portuguese shareholders. The recovery of the ‘default’ of Rioforte is a process that is still ongoing and the future of Pharol depend on how they behave these two assets.

What is most time consuming you, Hi or Rioforte
In equal parts. Although Hi is the asset that is larger in our portfolio, we have one of the executive directors permanently occupied with this issue.

Keep in September as the date to constitute the committee of creditors for debt recovery the Rioforte
It seems likely but the commission is not the most important issue at hand in Rioforte process. The certification of all debts, knowing exactly the dimension that has total debt of Rioforte and who are the creditors it is what concerns us more time. By the end of September we should have a much clearer idea of ​​what’s going on.

You have updated the forecast recovery
We have an obligation to communicate to the market what we consider the value of our assets. In our balance sheet in respect of March 31, are approximately EUR 135 million.

When approved the corporate reorganization approved by the Hi Pharol said he was now ready to assume the responsibilities as the largest shareholder . What are
The value of Hi depends largely on the capacity we have of moving the company in some well-defined directions. The first is a better operating performance. We need a company that clearly meets the profitability of its operations, in a very focused on cost reduction company. The second has to do with being able to have an adequate investment policy for the operation and development of communications in Brazil. The relationship with regulators is important.

Why
Because the ability to generate ‘cash flow’ also has to do with the investments that Hi is required to do in the market. This is a strategic axis that has come to occupy in a long time. We would like to make more investments but also to make sure that all investments are profitable for the company. Third, it is necessary that the ‘governance’ of Hi based on an increased presence of shareholders with the same principles of strategic direction defined publicly.

The Brazilian regulator authorized this reorganization …
We feel that this last decision of the regulatory authority in Brazil came, just to show that the regulator also considers that there is a clarification of the role of shareholders and a link to the operational issue. A new ‘governance’ and there is a clear identification of all shareholders and management with major strategic project of Hi was established. We We are committed sorry for this decision. The approval by Anatel, of course we can not fail to be considered a success

Missing element:.. The consolidation in Brazil
This is the fourth axis our strategic plan which, although a part in our hands, is not fully. We try everything we can to find solutions that create synergies in Brazil. The Pharol obviously has a role and a special responsibility.

Relations with the shareholders of Hi were strained due to the ‘default’. Felt this tension?
No. This was a subject already of the past. Not even feel a concern to speak very theme. Know that matters are delivered, know people who are delivered and raised in any difficulties.

The sale of Unitel still on the table?
is being crafted. It is a lengthy process, there are good contacts and I would say that the will of Hi to carry out this operation did not abate. On the contrary, still remains very much alive. There are not many buyers for participation and this makes negotiations sometimes more difficult by the demands that each partner – buyer and seller – does this in this business. But remains a very strong will to make that sale.

Looking At Pharol, with all that is still open, is a company that makes sense to be in two years?
It all depends on how they come evolving their assets. If in Brazil it is possible not only to improve operational performance, how to maintain a ‘governance’ very healthy if we can have a good connection with the authorities in Brazil and participate in any form of consolidation for the Pharol is able to come to give shares the Hi to its shareholders for each pass aa have a direct stake in Hi … I think it may well be that in two years they are other solutions for the company.

extinguish it
Once settled issues, such as Rioforte, would not be justified to have a very firm. But someone has to deal with the issues at hand and none of them is an issue that can be resolved in extremely short-term. We try to be as soon as possible and then the shareholders will decide whether it is worth continuing with the company or not.

LikeTweet

No comments:

Post a Comment