Brazilian telecom carrier Oi's mobile operation will be sold in shares to Tim, Telefônica and Claro

The three companies have the right to cover offers that may arise

11.Sep.2020 11:14 BRT

Oi is operating under bankruptcy court supervision;
The sale in shares aims to facilitate the approval of it by competition watchdog.

The Brazilian telecom carrier Oi‘s mobile operation will be sold in shares to TIM, Telefônica Brasil, and Claro, owned by Mexico’s América Móvil. According to O Globo‘s sources, Oi will divide the mobile phone company into three sets and deliver to each of the telecommunications companies. Telefônica, Claro, and TIM today have the right to cover offers that may arise.

Oi is operating under bankruptcy court supervision, late on Tuesday approved amendments to its reorganization plan that will allow the sale of certain of its assets, according to securities filings.

The sale in shares aims to facilitate the approval of it, which has already been settled at BRL 16.5 billion, with the regulatory agencies. The division will obey the operators’ market share: customers of each country’s region will go to the telcos that have the lowest market share in the area. The sale is expected to close at an auction later this year and the entire transaction is expected to be concluded in late 2021.