Brazilian telco giant Oi is to spin off and sell four of its businesses from its core operation.
Oi, formerly known as Telemar, is in the local equivalent of Chapter 11 bankruptcy protection and the spin-offs will happen prior to the sale of its broadband fibre unit. Oi is Brazil’s largest fixed-line operator.
The new units are: Oi’s Towers unit; Data centres; Mobile assets; Fibre infrastructure. Each of the spin-offs will generate cash and the money used to reduce debt as well as seeing some invested in its broadband fibre network. The sales on the four units are likely in August.
Oi has already announced the sale of its mobile division which is expected to realise $2.9 billion.
Reuters is reporting that Oi has received expressions of interest in the mobile division from most of its local competitors including TIM Participações and Telefonica Brasil, in buying the company’s mobile business.
Oi’s CEO, Rodrigo Abreu has reportedly said that selling the company’s mobile towers unit should generate some $190 million, and the Data centres business should realise $62 million.