Brazilian operator Oi accepted the revised binding bid submitted by investment bank BTG Pactual to acquire a stake in the company’s fibre-optic infrastructure assets (InfraCo). The purchase price is BRL 12.93 billion (USD 2.25 billion).
InfraCo was valued at BRL 20 billion and has a net debt of BRL 4.11 billion. BTG will acquire a total of 57.9 percent of the shares. This includes the merger of Globenet, the international operator acquired from Oi in 2013, into InfraCo at a value of BRL 1.52 billion. The remainder will be paid in a series of cash payments, at close and over the next three years. The final payment may be brought forward to 2022 at Oi's discretion.
As part of of Oi's debt restructuring, InfraCo must still be put up for auction. However, the deal with BTG gives it the right to match the highest bid that emerges in the competitive bidding. If the acquisition is completed, Oi will enter a shareholders and supply agreement with the new owner.
