Cemig to auction fibre assets instead of selling telecom unit - report

Thursday 8 March 2018 | 16:31 CET | News

Brazilian regional power utility Cemig has informed interested parties that it plans to sell the fibre operator Cemig Telecomunicacoes in an auction rather than its Cemig Telecom unit, two sources familiar with the matter told Exame. 

Earlier this month, Cemig's board approved the integration of Cemig Telecomunicacoes to its parent company. With the measure, Cemig has the ability to sell its fibre assets at auction. The asset auction would prevent a much more difficult negotiation for the privatization of a unit and represents an opportunity for telecom companies to expand their fibre networks through an acquisition. 

Among the companies interested in the assets of Cemig Telecom, whose fibre optic network reaches 9,500 kilometers across five Brazilian states, are Telefonica Brasil and TIM Brasil, the sources said, adding that the deals could range from BRL 300 million to BRL 500 million. Other smaller bidders could be Vogel, Algar Telecom and Aloo Telecom.

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