Financially stricken Brazilian telco Oi has informed its shareholders that it has completed negotiations with rivals Telefonica Brasil (Vivo), Claro Brasil and TIM Brasil, and accepted the revised BRL16.5 billion (USD3.1 billion) joint offer tendered by the three companies. As a result, the three bidders have been granted ‘stalking horse’ status, which allows them to make a higher offer than any subsequent bids that emerge during the competitive bidding process. Oi notes that this bid must be at least 1% higher than the sum of the cash offer and the net present value (NPV) of the long-term agreements for the performance of capacity services.
As previously reported by TeleGeography’s CommsUpdate, in late July the Vivo-Claro-TIM consortium submitted an improved bid of BRL16.5 billion for Oi’s mobile assets. The increased offer came after Oi overlooked the trio’s initial joint offer, in favour of a bid from US-backed tower firm Highline. Both parties submitted offers in the region of BRL15 billion in the first instance, but Oi stressed that it would be pursue whichever bid ‘provides greater legal assurances and certainty for the closing of the sale’.