Brazilian operator Oi accepted a joint BRL16.5 billion ($3.1 billion) bid from rivals for its mobile assets, as part of plans to raise funds for debt cutting.
Oi detailed in a statement the offer from Telefonica, TIM and Claro, will be held as a “stalking horse” bid. Oi entered exclusive negotiations with the above bidders earlier this year with the acquiring operators allowed the right to match other bids for Oi’s mobile assets.
Brazilian regional operator Algar Telecom and Singaporean sovereign wealth fund GIC, were rumoured to be working together on a possible bid for Oi in July.
The move is a big step forward in Oi’s saga to offload assets after entering bankruptcy in 2016, although it expects to exit bankruptcy protection by May 2022, around six years after starting the sale process.
In January, cash-strapped Oi sold off its stake in Angolan operator Unitel, to raise $1 billion for debts. Oi is also holding out for $3.7 billion for its TV operation.