Wednesday, March 11, 2020

Owner of Vivo and TIM negotiate purchase of Oi Móvel

Telefónica Brasil, owner of Vivo, and TIM announced on Tuesday evening (10) that they began negotiations to buy the mobile network of the operator Oi. The announcement was made by Telefónica to the shareholders of the two companies and Bank of America Merrill Lynch, financial advisor to the Oi Group, which is in judicial recovery. If the two carriers are successful, they will split the acquired deals among themselves, according to a statement sent to the market. "The transaction, if implemented, will create value for our shareholders and customers through increased growth, generation of operational efficiencies and improvements in service quality. In addition, it will contribute to the development and competitiveness of the Brazilian telecommunications sector," says a press release. Judicial recovery In judicial recovery since 2016, Oi company still faces losses and even hired financial advisors to evaluate the mobile phone operation, according to the newspaper "Valor Econômico". Hi asks for more deadline to complete judicial recovery Oi's judicial recovery process involves a total of R$ 65.4 billion in debt. Earlier this year, the Brazilian telecom company sold its stake in African operator Africatel to Angolan oil company Sonangol for US$1 billion. In a report released in early January, bradesco BBI analysts outlined a more positive scenario for the company, with the expectation of funding totaling about R$ 8 billion. The account included the outlook for the Angolan business, in addition to a bridge loan of R$ 2.5 billion.
G1 - 10/03/2020 News Item translated automatically
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