Stefano De Angelis, the CEO of TIM Participacoes (TIM Brasil), has confirmed that his company is exploring the acquisition of regional operator CEMIG Telecom, which was recently put on sale by utility firm Companhia Energetica de Minas Gerais (CEMIG). Telesintese reports the executive as saying: ‘Our industrial plan foresees major investments in the construction of fibre-optic networks, so why not buy the fibre network already built by CEMIG? … We have to look at the financial terms to see if the deal makes sense.’
Interested parties have previously been named as Telefonica Brasil (Vivo); Algar Telecom; Vogel Telecom, which was formed by Patria Investimentos in April 2015, following the merger of five regional fibre-optic operators, Avvio Telecom, Smart Brasil, SouthTech Telecom and Rede Otica Bahia; regional submarine cable operator GlobeNet Cabos Submarinos; and infrastructure funds managed by UBS. Local press reports have previously suggested that the telco is valued at around BRL193 million (USD59.1 million).
In other TIM Brasil news, the company has confirmed that the company’s board of directors has approved a plan to implement a ‘corporate reorganisation’ of its subsidiaries TIM Celular and Intelig, through the incorporation of TIM Celular by Intelig. By merging the units, TIM Brasil hopes to better exploit financial and operational synergies. TeleGeography notes that the Italian-backed firm acquired corporate telco Intelig in May 2010.