TIM mulls Nextel bid to boost Brazil presence - Mobile World Live

TIM mulls Nextel bid to boost Brazil presence

20 SEP 2018

Telecom Italia is reportedly considering making an offer for Nextel Brazil, as its interest in the for-sale operator increases.

Bloomberg sources stated Telecom Italia CEO Amos Genish could discuss a possible deal for the business at the Italian operator’s upcoming board meeting on 24 September: it may also hire advisers to explore a potential offer.

In August, Telecom Italia, Telefonica and America Movil, were tipped to be interested in Nextel Brazil, which is owned by NII Holdings and is the fifth-largest of seven operators in the country.

At the time, offers were expected to be submitted this month.

A move by Telecom Italia, which controls number three player TIM Brasil (which GSMA Intelligence estimates had 57 million connections at end-Q2), would give it a larger market share and a boost in spectrum in metropolitan areas, said sources.

Arguably, investment in Brazil would be justified as the country represents something of a bright spot for the company, given struggles in other markets including Italy, where competition recently increased with the entrance of France-based Iliad.

While NII Holdings owns a majority stake in Nextel Brazil, Access Industries also holds a 30 per cent stake in the company, which it acquired in May for $75 million. With that price in mind, the value of the entire company would be around $250 million.

Asset sales
Along with a possible tie-up in Brazil, Genish is also reportedly planning to discuss possible asset sales at the upcoming board meeting. This could include a discussion around its wholesale arm Spark and media unit Persidera, added sources.

The board meeting comes at a tumultuous time for the Italian operator. Its two largest investors Vivendi and Elliott Management have been embroiled in a row over the running of the company.

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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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