Oi closes InfraCo (V.tal) stake sale

13 Jun 2022

Oi has concluded the long-running sale of a controlling stake in its InfraCo (V.tal) unit, which was first agreed back in January 2021. Oi suggested that the delayed closing was due to ‘extensive negotiations’ relating to the level of fibre-to-the-home (FTTH) capacity provision afforded to Oi. The final value of the multi-stage transaction was set at BRL12.923 billion (USD2.637 billion). The new investors – led by BTG and Globenet – now hold a 57.9% stake in V.tal, which could rise to 65.27% by July 2023.

In a notice to shareholders, Oi confirmed: ‘The conclusion of the transaction … represents the fulfilment of the last critical stage of the Judicial Reorganisation Plan and the Strategic Transformation Plan of Oi, aimed at ensuring the company greater financial flexibility and efficiency and long-term sustainability, with its repositioning in the market, consolidating itself as one of the largest providers of high speed internet services and of corporate solutions in Brazil.’

In November 2021 InfraCo was renamed V.tal; the company seeks to position itself as a neutral network provider, and aims to pass 32 million homes with fibre by 2025.

Brazil, GlobeNet Cabos Submarinos, Oi, V.tal