TIM signs exclusivity deal with IHS over FiberCo stake

TIM signs exclusivity deal with IHS over FiberCo stake

TIM Brasil has entered exclusive talks with IHS Brasil Participacoes over the potential sale of a stake in its fibre network assets unit, FiberCo Solucoes de Infraestrutura (FiberCo).

CommsUpdate reports that talks with IHS will remain exclusive until 24th March 2021, with TIM anticipating an agreement by April. Four parties reportedly made formal proposals to acquire a stake in FiberCo from TIM. Emerging markets-focused infrastructure provider IHS operates more than 28,000 towers across Africa, Latin America and the Middle East.

FiberCo was spun-off to be separate from TIM’s retail business, with the operator noting: “FiberCo will allow TIM to achieve the expected growth in the Brazilian fibre market in the coming years, taking advantage of the open network approach and a focused operating model.”

TIM Brasil CEO Pietro Labriola noted: “Separating infrastructure will be an important lever to accelerate broadband coverage. This market will grow by 15 million customers and we must be ready to seize the opportunities.”

The announcement of TIM selling a stake in the unit follows swiftly from its rival Telefonica Brasil (Vivo) selling a 50% stake in its FTTH unit FiBrasil to Canadian investment fund CDPQ (Caisse de depot et placement du Quebec). Telefonica is also investing in Chilean FTTH provider InfraCo, together with KKR.

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