Brazil’s fourth-largest mobile operator Oi has succeeded in raising $1.1 billion from an asset sell-off that it hopes will bolster its competitiveness, as well as reduce debt and maintain its dividend.
The operator has announced the sale of two businesses – undersea cables and towers – that will help to meet a commitment to invest BRL6 billion ($2.7 billion) in infrastructure this year, as well as reduce its BRL27.5 billion debt load and meet dividend payments of BRL2 billion, according to Bloomberg.
Oi needs investment to match larger rivals Vivo, TIM and Claro in the mobile market. It also runs the country’s largest fixed network.
The operator has disposed of GlobeNet, its underseas unit, to Grupo BTG Pactual for BRL1.75 billion as well as transferred the use and rights of over 2,000 towers to SBA Communications for BRL687 million.
At the start of this year Oi dismissed its CEO. No official reason was given but the suggestion was that financial underperformance was behind the change.