TIM Brasil has informed its shareholders that it has signed an exclusivity agreement with IHS Brasil Participacoes to negotiate the terms and conditions for the sale of a stake in FiberCo Solucoes de Infraestrutura (FiberCo), a company set up to separate TIM’s fibre network assets from its retail business. The exclusivity agreement will remain in force until 24 March 2021, with TIM Brasil commenting: ‘FiberCo will allow TIM to achieve the expected growth in the Brazilian fibre market in the coming years, taking advantage of the open network approach and a focused operating model.’
IHS is a large and diversified provider of telecoms infrastructure, focused on emerging markets and has an operating footprint in nine countries in Africa, the Middle East and Latin America. The company currently operates more than 28,000 towers and seeks to ‘expand the value chain in infrastructure services’.
If the transaction comes to fruition, it will be the latest in a series of fibre-orientated spin-offs in Latin America. On 22 February Telefonica and KKR reached an agreement to invest in InfraCo, a Chilean fibre-to-the-home (FTTH) provider. Telefonica Chile will retain a 40% stake in the venture, while KKR will acquire a 60% of InfraCo. The transaction values 100% of InfraCo at USD1.0 billion. Subsequently, on 2 March Telefonica and Canadian investment firm Caisse de depot et placement du Quebec (CDPQ) reached an agreement for the creation of FiBrasil Infraestrutura e Fibra Otica (FiBrasil). CDPQ will invest up to BRL1.8 billion (USD317.8 million) in exchange for a 50% stake.