Brazilian operator Oi announced it will sell its stake in Companhia Santomense de Telecomunicacoes (CST), a move to increase cash flow and offset economic pressures brought on by the Covid-19 pandemic.
TeleSintese reported, Oi stated in a court filing to the 7th Business Court of Rio de Janeiro it received a $6 million bid for its 51% stake in the operator from Portuguese company Visabeira Global, a sum exceeding Oi’s valuation of $3.6 million.
CST is the incumbent provider of fixed-mobile and data services in the central African island country Sao Tome and Principe.
The company said the urgency of the sale was due to the effects of the global pandemic, according to TeleSintese.
Telegeography’s noted Oi indirectly owned 43.86% of CST at the end of 2019. The company’s shares are held in an 86% stake in Africatel Holdings which in turn holds the 51% CST stake. The remaining shares are held by the government of Sao Tome and Principe.
