Brookfield, Canada Pension Plan mulling Oi fibre bid, report says

5 Aug 2020

Brookfield Asset Management and the Canada Pension Plan Investment Board are considering launching a bid for Oi’s fibre-optic unit, Bloomberg reports, citing two people familiar with the matter. The unit, known as InfraCo, is also expected to attract formal interest from local tower firm Highline do Brasil II Infraestrutura de Telecomunicacoes (Highline), the sources said. Highline, which is backed by US-based Digital Colony, has already registered bids for the cash-strapped telco’s mobile business and its tower unit.

Oi is planning to sell as much as 51% of InfraCo’s shares, with a sale expected to take place in the first half of 2021. Last month, a private equity fund managed by Banco BTG Pactual proposed to acquire 25% of the fibre unit’s total capital alongside a 50% voting stake. That proposal was valued at BRL13.9 billion (USD2.7 billion), broken down as BRL6.5 billion for the stake, BRL2.4 billion to cover debts and BRL5.0 billion worth of investment; the overall fibre business is valued at BRL25.5 billion.

Brazil, Brookfield Infrastructure Partners, Canada Pension Plan Investment Board, Oi