TIM, Telefónica and América Móvil carve up Oi after $3.2bn auction
The battle over the future of Oi’s mobile operations has ended, with three companies winning joint control for US$3.23 billion in an auction in which they were the only bidder.
The consortium — of the Brazilian operations of América Móvil, Telecom Italia (TIM) and Telefónica — have been the only bidder since Highline do Brasil, owned by Marc Ganzi’s Digital Colony, dropped out in August.
The three will now split the assets between them, according to reports from Brazil.
Oi went bankrupt in 2016 with debts of $19 billion — the largest corporate failure in Brazil. Most of the money was owned to banks and to Anatel, the telecoms regulator.
TIM Brasil will pay about 47% of the total cost; Telefónica’s Brazilian business will pay about 34%. The stated cost includes a payment to Oi for “transition services”, to fund its transfer of assets to the three members of the consortium.
América Móvil will get 32% of the subscriber base from Oi’s mobile business, it said in its own filing, reported by Reuters.
Oi will continue to run the telecoms infrastructure, for which it will be paid by the three bidders.