Oi (OIBR3; OIBR4): Highline acquired fixed-telephone towers at auction, for R$1.697 billion

With an offer of R$1.697 billion, NK 108 Empreendimentos, a subsidiary of Highline Brasil, has purchased 8,000 fixed telephone towers from Oi (OIBR3;OIBR4) in an auction held on Monday afternoon (22). The event was conducted by the Company’s Judicial Reorganization Judge, Fernando Viana, of the Seventh Business Court of Rio de Janeiro.

The auction was called after a binding bid by NK 108 earlier this month, which was the only bidder. Even American Tower do Brasil and IHS do Brasil presented their qualifications at the hearing, but did not submit proposals for assets until the start of the event.

Highline has already acquired assets from Oi in 2020, in Business worth 1.07 billion Brazilian riyals Including mobile network towers and infrastructure sites.

The opening of the sale of shares in the Special Purpose Company (SPE) Torres 2 was determined by a court-supervised reorganization judge.

“Sentence [concluindo a RJ] “It won’t go out until after the sale of the item is completed,” a source associated with Oi’s judicial reorganization said at the time.

The sale of the towers also depends on the approval of the National Telecommunications Agency (Anatel) and the Administrative Council for Economic Defense (Cade). It is not yet clear whether the judge will be able to rule to end the judicial reorganization before the entities agree. “It’s a case that the judge will examine yet,” the source linked to the case said.

The representative has already agreed with Royal Jordanian’s conclusion

On July 12 last month, the Public Prosecution Office issued an opinion agreeing to the end of the process, albeit with some reservations. The attorney evaluated the final report submitted by the judicial officer, the law firm Arnold Wald, and stated that he did not disagree with RJ’s closing sentence.

In one caveat, the MP asked Oi for a report by an independent auditor to understand the sale of DTH’s customer base to Sky Brasil. This is because the company requested that the asset be sold outright, without a judicial auction, as is usually required in judicial recovery proceedings. Oi claimed that the direct sale took place because there were no other parties involved besides Sky.

The representative also asked Oi to provide forecasts for the payment of bankruptcy claims and debts that precede the judicial recovery process.

By selecting Judge Fernando Viana, Oi also needs to file a report proving its financial viability for the next three years and the payment of creditors.

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