Oi looks to attract higher bids for assets - Mobile World Live

Oi looks to attract higher bids for assets

17 AUG 2020

Brazilian operator Oi moved to secure amendments to its restructuring plan, as it looks to secure higher bids for its mobile and fibre assets which are both subject to sales.

Oi said in a statement it wanted creditors to extend loans to ensure it gets higher offers for InfraCo, its fibre unit, as well as its mobile assets.

Oi added it would offer creditors the chance to pay less on their current debt, if they provide the company with new funds.

The troubled Brazilian operator is due to exit bankruptcy protection by May 2022, six years after starting the process.

Regarding its mobile assets, the company announced last week it had entered into exclusive negotiations with Telefonica, Telecom Italia and Claro about a sale.

The three companies have submitted a BRL16.5 billion ($3 billion) offer, and if an agreement is reached, the operators will be able to match any rivalling bid that comes in.

As part of the amendments, Oi proposed that all parties interesting in bidding for the mobile assets could enter “into a take or pay agreement” for the provision of data transmission services with a term of three, five or 10 years, at the discretion of the bidder.

The company also set floor bids at BRL20 billion for a 51 per cent stake in its fibre unit, pointing to “high demand for the asset in the preliminary stage” of the sales process.



Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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