Oi SA to sell submarine fibre units to BTG for USD772m; leases tower assets to SBA Corp

16 Jul 2013

Brazilian fixed and mobile operator Oi SA has struck a deal worth BRL1.75 billion (USD772 million) to sell its international carrier and underwater fibre-optics units to a fund led by the investment banking firm Grupo BTG Pactual. In a securities filing, Oi SA confirmed that the deal to offload the two subsidiaries – GlobeNet and Brasil Telecom Cabos Submarinos – is subject to regulatory approval in the countries in which they operate, namely Brazil, Venezuela, the US, Bermuda and Colombia. Oi SA and BTG entered into a definitive agreement on 12 July, to transfer the assets – including over 22,500km of fibre-optic submarine cables – to the bank. Further, it is understood that the deal also includes the transfer of linking connection points and ‘supply of capacity by GlobeNet to Oi and its direct and indirect subsidiaries through a fixed-price long-term contract with volume guarantees’.

Separately, Oi SA has also agreed a deal to lease some 2,113 telecoms towers to SBA Torres Brasil, a subsidiary of SBA Communications Corporation, for BRL686.73 million. The deal is expected to boost SBA’s owned or leased tower footprint in Brazil to more than 3,000 towers.

Brazil, Oi