Sercomtel sale attempt to resume in July; telco may need BRL30m bailout

9 Apr 2020

After the proposed sale of Brazilian regional telecoms operator Sercomtel fell through in January this year, local news site Folha de Londrina has reported that a second sale attempt is now expected to commence in the last week of July. If the sale does not proceed as planned, officials have cautioned that the telco will likely require a BRL30 million (USD32.6 million) bailout to maintain service provision. However, municipal council officials have warned that the funds will not be injected if the telco is no longer considered a viable proposition, and Sercomtel could be shut down if no buyer comes forward.

As previously reported by TeleGeography’s CommsUpdate, the deadline for bids for Sercomtel was previously set at 31 January 2020, but none of the five parties that acquired bidding papers opted to register their official participation in the process. The reserve price for the telco was set at BRL130 million.

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. Power company Companhia Paranaense de Energia (Copel) holds a 45.00% stake in the operator, with the remaining 4.12% distributed between minority shareholders.

Brazil, Sercomtel