In an ‘Amendment to the Judicial Reorganisation Plan’ published on 15 June, cash-strapped Brazilian telco Oi has underlined its intention to sell its mobile assets via a ‘competitive process’. Oi will require interested parties to submit sealed bids for 100% of its mobile unit, with a minimum price of BRL15 billion (USD2.9 billion). The mobile assets will be awarded to the bidder who offers the highest price above the minimum price, unless the second highest bid ‘provides greater legal assurances and certainty for the closing of the sale’. Note: this bid must be no more than 5% lower than the highest bid.
To pave the way for the sale, Oi’s mobile business – along with its tower unit, data centre business and InfraCo arm – will be converted into distinct ‘isolated production units’ (UPIs). The UPIs will be formed as special purpose stock entities (SPEs).