Oi sells GlobeNet to Brazilian investment bank

Oi sells GlobeNet to Brazilian investment bank

Brazilian operator Oi, has agreed the sale of its subsidiary GlobeNet, to Brazilian investment bank, BTG Pactual, for $772 million.

Under the terms of the agreement, which both companies entered into on July 12, Oi will transfer all equity interest in GlobeNet to BTG Pactual.

Oi, Brazil’s largest operator, has been under pressure to improve its financial performance and earlier this year was reported to have hired Goldman Sachs to advise on the GlobeNet sale.

Bayard de Paoli Gontijo, newly appointed investor relations officer at Oi, said that the deal included the “supply of capacity by GlobeNet to Oi and its direct and indirect subsidiaries through a fixed-price long-term contract with volume guarantees”.

GlobeNet operates over 22,500km of fibre-optic submarine cables between the US, Bermuda, Colombia, Venezuela and Brazil, and the deal is still subject to regulatory and antitrust approval in these countries.

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