Brazilian operator Oi has sold its subsea cable business Globenet to BTG Pactual for R$1.7bn (US$773m), and towers to SBA Communications for R$687m (US$304m).
BTG’s investment unit BTG Pactual Infraestrutura II Fundo acquired Globenet’s 22,500km of…
Brazilian operator Oi has sold its subsea cable business Globenet to BTG Pactual for R$1.7bn (US$773m), and towers to SBA Communications for R$687m (US$304m).
BTG’s investment unit BTG Pactual Infraestrutura II Fundo acquired Globenet’s 22,500km of underwater fibre optic cables linking Brazil, Bermuda, Colombia, Venezuela and the USA, and the fixed-price long-term contracts Oi has with the unit.
The sale is subject to regulatory and antitrust approvals in the five countries Globenet operates in. Oi did not give an indication on when it expected the deal to complete.
For its part SBA has leased 2,113 towers through its local subsidiary SBA Torres Brasil. The towerco plans to rent space on the towers, which currently average 1.15 tenants per site, to other operators.
SBA said it planned to fund the deal, which takes it rights in Brazil to 3,000 sites, using cash on hand and by utilising its currently undrawn US$770m revolver.
Oi said the deal would cut costs while ensuring a consistent service.
Last week Oi suspended a bond offering which could have raised as much as R$1bn (US$442m) citing market conditions.
The incumbent fixed-line and wireless operator in Brazil recently appointed Zeinal Bava as its CEO who joined from Portugal Telecom, one of its leading shareholders.
The press has speculated that the two companies could merge, but Oi said in late June that it was not in negotiations with PT regarding a merger.
