Brazilian telecoms company Oi has received authorisation from a Rio de Janeiro court for the sale of Timor Telecom (TT) to Investel Communications Limited, reports financial newspaper Valor Economico. Following a competitive sale process, in December last year Oi accepted 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. Judge Fernando Viana of the 7th Business Court of Rio de Janeiro has now granted Oi’s request to continue with the transaction, but ruled that an assessment is made before the deal is completed to ensure that the amount offered by Investel is appropriate.
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%).