en.Wedoany.com Reported - Brazilian telecom operator Oi announced in a material fact notice released this Saturday (11th) that it has signed a contract with Método Telecomunicações for the sale of its telephone service division, covering three-digit services, interconnection services, public telephones, and fixed-line coverage obligations.
The contract was signed last Friday (10th), and on the same day, the 7th Commercial Court of Rio de Janeiro summoned Método to fulfill its commitment to alleviate Oi's cash flow pressure. In April, the Minas Gerais-based company won the judicial auction with a bid of 60.1 million reais, but the signing had been pending.
According to Oi's notice, the transaction's completion is subject to specific conditions stipulated in the contract, including approval from the National Telecommunications Agency (Anatel) and the Administrative Council for Economic Defense (Cade) for the equity transaction. The payment of 60.1 million reais will be made in installments, with the first payment expected next week and the remainder within 90 days after document handover. Next week, Método also plans to begin discussions with Oi and Anatel on the takeover of assets and liabilities.
The complexity of the related documents had previously been a factor hindering Oi from reaching a contract with the buyer. According to reports, Método was surprised by the court's summons to sign the contract with a penalty clause, believing it had been following the proper asset transfer procedures.
The telephone services involved in this Independent Production Unit (UPI) include: providing Switched Fixed Telephone Service (STFC); maintaining fixed-line service in areas where Oi is the sole provider (Carrier of Last Resort, COLR) until December 2028; offering three-digit services to public sector clients, such as 190, 192, and 193; interconnection services; tower infrastructure, including masts, poles, brackets, bases, cabling, and related assets; public telephone service provision and maintenance; as well as customer base, labor contracts, supplier contracts, related terminal equipment, and other assets, rights, and obligations associated with this Independent Production Unit.
After setbacks in asset sales, Oi is facing severe cash constraints and has indicated a potential lack of operating funds starting in August, prompting the court's decision to summon it to sign the contract with Método. In addition to the telephone service division, Oi is also seeking authorization for a new round of sale of its corporate service division, Oi Soluções. One court requirement is the provision of an updated list of division contracts, including their validity periods. Meanwhile, approval for the sale of V.tal shares to the BTG Pactual fund has been temporarily suspended.
