Oi moves closer to mobile asset sale - Mobile World Live

Oi moves closer to mobile asset sale

23 JUL 2020

Brazilian operator Oi revealed it is to enter into exclusive negotiations with infrastructure company Highline do Brasil for the sale of its mobile assets, dealing a blow to Telecom Italia, Telefonica and Claro which submitted a rival offer.

In a statement, Oi said Highline, which is owned by US private company Digital Colony, had submitted the best binding offer above the minimum price established during the competitive process. 

Reuters reported Oi had set a minimum price of $2.93 billion for the assets.

According to the rules set for the sale, Oi explained it had granted Highline exclusivity to negotiate the deal further, which is in effect until 3 August 2020.

The development appears to scupper a rival bid from the trio of operators, which had teamed on a move earlier this week.

As part of their proposal, the companies had asked Oi for the right to match any rival bids, a request which appears not to have been granted.

Oi has said it will use the proceeds from the sale to reduce its debt, while putting additional focus on its broadband and fibre business.

Earlier this week, it was revealed Highline also made a $200.1 million bid for Oi’s tower unit.

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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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