Brazilian regional electricity utility Cemig has confirmed that it is looking to sell a stake in its fibre optic broadband unit. TIM Brasil could be a potential buyer, TelecomFinance understands, while local private equity firm GP Investments is…
Brazilian regional electricity utility Cemig has confirmed that it is looking to sell a stake in its fibre optic broadband unit. TIM Brasil could be a potential buyer, TelecomFinance understands, while local private equity firm GP Investments is reportedly also interested.
“We report that Cemig Telecom is evaluating opportunities to expand and add value to its operations; but at the present time no agreements have been reached,” Cemig said in a statement to the market.
A person familiar with TIM Brasil said that the Telecom Italia-owned carrier could be interested in acquiring the network operator as part of its ongoing fibre strategy aimed at improving network quality and coverage.
In 2011, TIM acquired telecoms infrastructure operator AES Atimus Group from another utility, Companhia Brasiliana de Energia, for R$1.6bn (US$520m).
The deal provided TIM with 5,500 km of fibre optic network in the states of Sao Paulo and Rio de Janeiro, allowing the company to optimise synergies with Rio de Janeiro backbone provider Intelig, which it acquired in 2009.
Local business magazine Exame had earlier reported that Cemig was preparing to divest a stake worth R$1bn (US$325m) in Cemig Telecom to GP Investments and other investors.
GP did not respond to a request for comment.
In the last few years, Bermuda-based GP Investments has invested in a number of telecoms infrastructure companies including Geodex, Pegasus Telecom and Oi.
In November, American Tower acquired BR Towers from GP and other shareholders for R$2.255bn (US$880m).
Set up in 1999, Belo Horizonte-based Cemig Telecom owns the largest fibre-optic network in the state of Minas Gerais.
