Brazilian telecoms company Oi has announced that, pursuant to its judicial reorganisation plan, it has requested the authorisation of a Rio de Janeiro court for the sale of Timor Telecom (TT) to Investel Communications Limited. Following a competitive sale process, Oi received a proposal from Investel for the acquisition of direct and indirect interests in TT for approximately USD36 million, in addition to the payment of the Timorese operator’s debts to Oi in the amount of USD26 million.
According to the press release: ‘Oi requested the judicial deposit of the amount attributed to the disposition of the direct and indirect interests, which is to be kept in a judicial account affiliated with the 7th Corporate Court of the District of the Capital of the State of Rio de Janeiro, specifically for its use in compliance with the Judicial Reorganisation Plan.’ In addition to the authorisation, should it be granted, the sale of the direct and indirect interests in TT will be subject to the implementation of other conditions. Oi said it will inform the market if such conditions are implemented after the decision of the 7th Corporate Court.
TeleGeography’s GlobalComms Database notes that the deal involves a 54.01% shareholding in TT, controlled by Telecomunicacoes Publicas de Timor (TPT), in which Oi owns 76.14%, in addition to a direct 3.05% stake held by PT Participacoes SGPS. The Timorese government currently holds a 20.59% stake in TT, with the remaining shareholders being VDT Operator Holdings (17.86%) and Timorese businessman Julio Alfaro (4.49%).