Oi asset sale raises $1.1 billion

Brazilian number four Oi has raised $1.1 billion following the sale of various assets. The operator is aiming to become more competitive with its rivals while lowering its overall debt.

So far, Oi has sold its underseas business Globenet and its towers unit. This will facilitate the operator’s goal of investing BRL6 million ($2.7 billion) in infrastructure this year. In addition, Oi is aiming to lower its BRL27.5 debt while maintaining dividend payments of BRL2 billion.

Globenet was acquired by Grupo BTG Pactual for BRL1.75 billion, while for BRL687 million SBA Communications purchased the use and rights of more than 2000 towers. Oi will require investment if it is to keep the pace with the market-leading trio of Vivo, Claro and TIM.

It is believed that the sacking of Oi’s CEO earlier this year – for which no official reason has been given – was due to the operator’s underwhelming financial situation.  

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