Luxembourg-based LetterOne Holding (L1 Technology) has issued a statement confirming that its planned investment in the Brazilian telecoms sector has been abandoned, due to a lack of interest from Telecom Italia (TIM) – the parent company of TIM Participacoes (TIM Brasil). In October 2015 L1 Technology, which is ultimately controlled by Russian billionaire Mikhail Fridman, signed an investment pact with Brazilian telco Oi – on the proviso that it agreed to explore a potential tie-up with domestic rival TIM Brasil.
A statement released by the would-be investor confirmed: ‘L1 Technology’s approach was to unlock the potential of this envisaged telecoms deal through a structure within which all companies were aligned. However, without TIM’s participation, L1 Technology can’t now proceed with the proposed deal as previously envisaged’.
If realised, a merger between TIM Brasil and Oi would have created the largest wireless operator in Brazil in terms of subscribers. If the deal had come to fruition, L1 had offered to inject up to USD4 billion in Brazil.