Judge overturns Copel sale injunction; Sercomtel sale stutters

5 Feb 2020

Brazil’s Superior Court of Justice (Superior Tribunal de Justica, STJ) – the highest appellate court in the country for non-constitutional questions of federal law – has overturned the injunction that had suspended the contract between state power company Companhia Paranaense de Energia (Copel) and Banco Rothschild, relating to the planned sale of Copel Telecomunicacoes (Copel Telecom). The sale process was halted last month, after the Parana engineers’ union filed an injunction because the contract was assigned to Rothschild in July 2019 without a formal bidding process. When it resumes, the sale is expected to generate around BRL1 billion (USD242.9 million).

Another Brazilian telco sale enduring a bumpy ride is that of Sercomtel. The deadline for bids was 31 January, but none of the five parties that acquired bidding papers opted to register their official participation in the process. As such, a second sale attempt will be made within the next 90 days. The reserve price for the telco was set at BRL130 million. As previously reported by TeleGeography’s CommsUpdate, in May 2019 the City Council of Londrina – which holds a 50.88% stake in the telco – voted to privatise Sercomtel after an 18-1 ballot in favour of the proposal. Copel holds a 45.00% stake in the operator, with the remaining 4.12% distributed between minority shareholders.

Brazil, Copel Telecom, Sercomtel