Telecom Italia Group has reportedly authorised its subsidiary TIM Brasil to move ahead with its planned acquisition of Oi Movel, the cellular unit of cash-strapped telco Oi. According to TeleTime, Telecom Italia chairman Salvatore Rossi has given TIM Brasil CEO Pietro Labriola ‘full power to examine and approve the final terms of the binding proposal that will be submitted by the group’s Brazilian subsidiary, in accordance with local corporate governance rules’.
As previously reported by TeleGeography’s CommsUpdate, in June Oi confirmed 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’.
In March this year TIM Brasil and Telefonica Brasil (Vivo) confirmed that they had commenced negotiations to jointly acquire Oi’s mobile business; it remains to be seen whether Vivo will be part of TIM Brasil’s ‘binding proposal’.