Brazilian telecommunications giant Oi has inked a deal with Mileto Tecnologia for its pay-TV assets.
The agreement, announced on January 9, 2025, marks a crucial step in Ois ongoing restructuring efforts.
Ois stock surged 6.67% to R$1.44 following the news, reflecting investor optimism.The deal involves Ois TV subscriber base, terminal equipment, and related rights.
Mileto Tecnologia will act as a stalking horse bidder in the competitive sale process.
This role gives Mileto the right to match any higher offers that may emerge during the proceedings.Ois move aligns with its strategy to streamline operations and focus on fiber broadband.
The company views this segment as key to its future growth.
Oi has been actively divesting assets to reduce debt and improve its financial position since 2016.The sale will occur through an Isolated Productive Unit (UPI), a common method for companies in judicial reorganization.
This approach allows Oi to sell assets without the burden of existing liabilities.
The deal still requires approval from Brazilian regulatory bodies.Ois TV business has faced challenges in recent years.
The pay-TV market in Brazil has been declining, with major players like Disney closing channels.
Streaming services have gained ground, impacting traditional pay-TV businesses.Ois TV Asset Sale to Mileto Sparks Market Interest Amid Restructuring.
(Photo Internet reproduction)Ois TV Asset Sale to Mileto Sparks Market Interest Amid RestructuringThe telecommunications landscape in Brazil continues to evolve rapidly.
Ois competitors, such as Telefnica Brasil and TIM Brasil, have shown more stable performances.
These companies report consistent revenue and profit growth, while Ois profitability stems from accounting gains.Ois restructuring journey has been complex.
The company entered its second judicial reorganization in March 2023, just months after emerging from its first.
This move aimed to address ongoing financial challenges and renegotiate debts.The potential sale of TV assets represents a significant milestone for Oi.
It demonstrates the companys commitment to adapting to market changes and focusing on core strengths.
The outcome of this deal could have far-reaching implications for Ois recovery and the broader Brazilian telecommunications sector.