A Brazilian court announced the long-awaited auction of Oi Movel will take place next month in Rio de Janeiro, where its three main rivals plan to acquire a stake.
TeleGeography’s CommsUpdate reported, the auction will be held on December 14 and was revealed by judge Fernando Viana of the 7th Business Court of the Rio de Janeiro Court of Justice. Viana approved draft notice last week and competing bids will take place in Viana’s office on that date.
Oi granted rivals Telefonica Brasil, Claro Brasil and TIM Brasil ‘stalking horse’ status giving them the power to bid higher than any later bids that may emerge during the auction, when accepting their joint BRL16.5 billion ($3.1 billion) bid, as the cash-strapped operator aimed to raise funds to cut its debt.
This bid was overlooked by Oi for an offer from tower infrastructure company Highline do Brasil II Infraestrutura de Telecomunicacoes, which was granted exclusive negotiations for Oi’s mobile assets, for a reported $2.93 billion.
