Oi to sell stake in Africatel Holding

Brazilian mobile operator Oi has announced plans to sell its assets in Africa in a bid to bolster its position in its domestic market.

Oi is reportedly looking to sell off its 75% stake in Africatel Holding, which owns sections in other African telecoms companies including Unitel, Angola’s largest wireless operator.

The unit is worth approximately $2.1 billion, and the move is intended to ease Oi’s debt, after its merger with Portugal Telecom left the company $20 billion in the red.

It is thought Oi will use proceeds from the unit to invest in the Brazilian domestic market, following a wave of consolidation.

Oi is also reportedly interested in a deal to acquire Telecom Italia’s Tim Brasil in a deal worth $8 billion, and could team up with Mexico’s Carlos Slim to make an audacious joint bid for the company.

Telecom Italia could exit the market after it failed to acquire GVT last month, after its parent company Vivendi opted to accept Teleónica’s €7.45 billion bid.