Major players among 14 bidders for CEMIG Telecom

20 Jun 2018

A total of 14 companies have registered their interest in bidding for the CEMIG Telecom assets recently put up for sale by Brazilian state-run utility Companhia Energetica de Minas Gerais (CEMIG), Estadao reports. The news site says that the list of potential bidders includes domestic telcos TIM Brasil, Telefonica Brasil (Vivo), Oi, Claro Brasil and Algar Telecom. Other interested parties include 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; infrastructure firm American Tower; utility group Enel; and domestic ICT firm Grupo Cimcorp.

For the purpose of the divestment, the company’s communications assets have been divided into two lots: Lot 1 comprises assets in Minas Gerais, Sao Paulo and Rio de Janeiro, while Lot 2 will include infrastructure in Ceara, Bahia, Pernambuco, Goias and Belo Horizonte. Bidding for the first lot will start at BRL335.07 million (USD90.9 million), while a minimum price-tag of BRL32.47 million has been applied to the second batch of networks. Bidding will take place between 16 July and 20 July, and the results will be revealed on 27 July. In order for the auction process to conclude, the winning bidder must submit an offer that is at least 10% higher than the next largest offer.