Telecom Italia’s Brazilian arm agrees EUR700 million AES purchase

11 Jul 2011

TIM Participacoes, the Brazilian arm of Telecom Italia, has agreed to pay EUR700 million (USD998 million) for AES Atimus group to expand its network capacity in Rio de Janeiro and Sao Paulo. The acquisition will enable TIM to realise operating and capital expenditure savings of BRL1 billion (USD639 million) over three years by avoiding rental network fees and build-out costs. According to a Telecom Italia statement, AES Atimus is the owner of a 5,500km fibre-optic network covering all 21 towns that make up the urban conglomeration of Sao Paulo and Rio de Janeiro. The move comes amid tight competition between telecoms groups in Brazil, as operators build up network capacity to serve the growing smartphone market. AES Atimus reported an EBITDA margin of 63% in 2010, on sales of BRL211 million.

Brazil, Telecom Italia (TIM), TIM Participaçoes