Oi investors considering sale of mobile business, report says

6 Feb 2019

Investors holding sizeable stakes in troubled Brazilian operator Oi are considering selling off its mobile business and refocusing on the telco’s expanding fibre-optic networks, O Globo reports. Options under consideration include merging the mobile unit with another wireless provider, the newspaper adds.

Oi completed its planned capital increase – in accordance with the company’s long-running Judicial Reorganisation Plan – late last month. In total, 3,225,806,451 new common shares were issued during the capital increase process, generating around BRL4 billion (USD1.1 billion) for the cash-strapped telco.

According to TeleGeography’s GlobalComms Database, Oi filed the largest bankruptcy request in Brazil’s history in June 2016, after failing to reach an agreement with its creditors. The filing, which covered Oi and six subsidiaries, listed BRL65.4 billion of debt and the company chose judicial reorganisation to preserve the value of its holdings and to continue providing services to its customers.

Brazil, Oi