The money from Hi is running out: she says her cash flow has reached the “necessary minimum” and that funds may run out in February 2020. For this reason, the operator plans to raise up to R $ 2.5 billion, in addition to selling non-strategic parts of the company to over the next few years. A merger with TIM, at the moment, would be ruled out.
O Estadão obtained projections provided by Oi to Anatel: there is a “high probability” that the operator will interrupt activities for lack of money if nothing is done, causing a “very high” impact on the telecommunications sector. In the second quarter alone, it had a loss of R $ 1.5 billion.
For this reason, Oi executives are conducting “intense conversations” with banks to raise up to R $ 2.5 billion. The operator has not yet decided how this will be done, but CFO Carlos Brandão said last week that the company is studying some options: one of them is to issue debentures, that is, sell debt securities. The other alternative is to increase capital by issuing new shares on the stock exchange.
In addition, Oi intends to raise R $ 6.5 billion to R $ 7.5 billion by selling non-strategic assets: this includes telecommunications towers, data centers and real estate. These operations are scheduled for the years 2020 and 2021.
There are even rumors about a possible merger between Oi and TIM. However, one source tells the Estadão that Telecom Italia is also very indebted, and does not see the union of the two operators as a priority.
Oi presented its projections at meetings with Anatel last week, including board members and the agency’s president, Leonardo Euler de Morais. He denied rumors of a possible intervention, saying that this would occur only in the last case: “a definitive market solution is the preferred scenario for the positive evolution of the situation”.
Government wants approval of PLC 79 to help Oi
To help Oi, the government wants to expedite the approval of PLC 79/2016 (House Bill), which creates a new benchmark for the telecommunications sector. With it, fixed-line operators will have more freedom to set prices, just like in mobile telephony; and will bear lower costs per do not have universalization goals to install pay phones.
The law project is stopped for months at the Science and Technology Commission. Government officials want Senate President Davi Alcolumbre (DEM-AP) to take the text directly to the floor so that it can be approved within 30 days.