Oi hires Goldman Sachs for GlobeNet sale?

Oi hires Goldman Sachs for GlobeNet sale?

Brazilian telco Oi has reportedly hired Goldman Sachs as an advisor for the sale of subsea cable operator GlobeNet.

The deal could be worth up to R$1.5 billion ($757.3 million), according to sources speaking to the Journal Exam publication.

Oi is said to be awaiting proposals from several private equity funds for a sale model in which it would be able to lease back capacity on GlobeNet’s subsea cables in a similar way to recent sale and lease back agreements struck by mobile operators selling their towers.

GlobeNet’s assets include dual ring subsea architecture spanning more than 22,000km between North and Latin America with 560Gbps of lit fibre and a total design capacity of more than 7Tbps.

The company would have a cash flow of approximately $120 million, according to Oi’s calculations.