Oi denies sale of mobile operations in the short term | Telecommunications

In the midst of a judicial reorganization process, the Hi has suffered from speculation about a possible sale of the mobile arm. However, executives of the operator deny any intention, claim that there are no negotiations in progress and highlight the importance of Oi Móvel.

Hi

In an interview with the Economic value, COO Rodrigo Abreu informs that there is no possibility for Oi to dispose of its mobile operation in the short term as a way to meet financing needs and that there are no ongoing negotiations or concrete offers for the assets of the mobile arm.

Abreu pointed out that, if by any chance the deal happened, the process would take time and could not be concluded in a few months, due to regulatory, competitive and legal processes. However, the operator does not rule out a possible sale in the long run: “One of the positive points of our plan is that we also have this option for the future, to analyze whether this would be an option that could generate value for the company with the correct value if there was an offer ”, he says.

To Telesynthesis, Abreu also informed that the mobile unit is valuable to Oi and has been growing in postpaid, as shown by the latest financial results. As it plays an important role in generating value for the company, Oi will protect this capacity for better decision-making in the future.

Lifting box

To raise cash and put the strategic plan into practice, Oi must sell non-strategic assets, such as towers, real estate and data centers, in addition to a 25% stake in the capital of the Angolan operator Unitel. The operator showed a focus on expanding its fiber optic network to adopt FTTH technology and already has almost 500 thousand fiber optic customers, with the forecast to end the year with 5 million covered households. For 2021, it is expected that there will be 16 million home passed by Oi.

In addition, Oi should launch R $ 2.5 billion of its debt securities for sale to the market (debentures), which would add up to an additional R $ 2 billion in credit lines from foreign banks for equipment purchases. As a result, the estimated value for cash inflows is between R $ 6.5 and 7.5 billion.

The operator also commented on the frequency auction that should take place next year. To Telesynthesis, President Eurico Teles stated that he considers participation in spectrum auctions “for both the leftovers and the new 5G frequencies”. Due to the spectrum limits established by Anatel, only Oi or an incoming operator could buy the remains of the 700 MHz auction.

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