Rivals TIM, Claro and Vivo have joined together to launch a binding offer for Oi's mobile business, the companies confirmed. No financial details of the offer were disclosed.
Vivo and TIM announced in March that they were considering a joint bid, and the latest move is for Claro, owned by America Movil, to join the plan. The bid conditions give the companies the right to match any better offers Oi may receive.
Oi is holding a competitive tender for the assets, and the sale is part of its efforts to restructure its debts. Oi confirmed that its advisor Bank of America Merrill Lynch had received binding offers from bidders, but did not provide further details. A sale still would require creditor approval of its new restructuring plan proposed in June. Oi plans to focus on the fibre broadband market after exiting the mobile business.
If successful, the takeover would reduce the Brazil mobile market to three major operators from four. Oi is the fourth largest operator with a 16 percent share of customers as of May. The joint bid covers Oi's customer base, spectrum rights, rights of use for towers and antennas, elements of the access and core mobile networks, and other systems and platforms.
