Oi asset sale finalised and awaiting approval

Oi asset sale finalised and awaiting approval

The sale of Oi’s assets is almost complete, with final purchase agreements now signed by the Brazilian operator and the three members of the consortium making the acquisition.

America Movil’s Claro, Telecom Italia and Telefonica – Oi’s three main rivals in the market – each made stock exchange announcements confirming that they had signed all relevant contracts for the purchase. All that is left is for Brazil’s competition commission CADE and regulator Anatel to approve the deal.

Oi’s assets were sold at auction last year, with the operator’s rivals joining forces as a consortium to lodge the winning BRL16.5 billion ($3 billion) bid. The operators plan to split the Oi’s customers, mobile infrastructure and spectrum licences between their respective Brazilian units.

The funds raised from the bid will be used to pay down Oi’s debt burden, aside from a BRL756 million reserve which will cover transition services, i.e. the continuation of service for Oi’s customers while the takeover is underway.

Under pressure from its escalating debt burden, Oi ultimately began bankruptcy protection procedures in 2016. If the sale of its assets is approved, it will close the book on the turbulent saga of the operator’s fate.

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