Brazilian fibrecos Southtech Telecom and Avvio Telecom are set to merge, creating a national infrastructure company.
The combined entity, known as Vogel Telecom, will own 12,000km of fibre, operating in 13 states and the federal district across the…
Brazilian fibrecos Southtech Telecom and Avvio Telecom are set to merge, creating a national infrastructure company.
The combined entity, known as Vogel Telecom, will own 12,000km of fibre, operating in 13 states and the federal district across the southeast, northeast and centrewest of the country.
Vogel’s expansion plans, which include network deployment in the states of Parana and Santa Catarina, will be backed by Avvio’s current sponsor, infrastructure fund P2Brasil, which acquired a stake in Avvio one year ago.
Southtech and Avvio could not be reached for comment, while P2Brasil, a 40:60 JV between Promon and Patria Investimentos, declined to comment.
A person familiar with the fund confirmed that P2 will be a shareholder in the merged entity, along with Southtech and Avvio founders.
In 2013, Southtech and Avvio reportedly posted R$40m(US$13m) and R$39m in revenues respectively.
Another local fibreco, Belo Horizonte-based Cemig Telecom recently came up for sale, with Telecom-Italia owned TIM Brasil rumoured to be a potential suitor.
Cemig Telecom, a unit of regional electricity utility Cemig, owns the largest fibre optic network in Minas Gerais.
