Highline swoops for Oi towers

30 Nov 2020

Cash-strapped Brazilian telecoms giant Oi has confirmed that it has agreed to sell its tower unit to Highline do Brasil II Infraestrutura de Telecomunicacoes (Highline), which presented the sole acquisition proposal for the assets. The binding offer for UPI Towers (the ‘isolated production unit’ comprising the telco’s tower assets) was valued at BRL1.067 billion (USD199.6 million) and will paid in cash instalments. The Judicial Reorganisation Court has ratified the sale agreement, but the transaction still requires approval from the Administrative Council for Economic Defence (Conselho Administrativo de Defesa Economica, CADE).

TeleGeography notes that the deal represents Highline’s second major tower deal this month, following the acquisition of Phoenix Tower do Brasil. That transaction saw Highline agree to acquire 2,500 tower sites from funds managed by Blackstone Tactical Opportunities (Blackstone), and will increase Highline’s tower footprint to 3,200 upon closing.

In related news, Oi has agreed to sell its UPI Data Center business to Titan Venture Capital e Investimentos (Titan) for BRL325 million. As with the tower unit, Oi’s data centres only attracted one bidder.

Brazil, Highline do Brasil, Oi