Telefónica is considering plans to bid for Brazilian operator Oi’s fiber broadband unit, according to Reuters.
Debt-ridden Oi entered bankruptcy protection in March, just months after it had exited bankruptcy protection that lasted six years.
In October, Oi board directors hired advisors to evaluate strategic alternatives involving the monetization of UPI ClientCo, which comprises its customer-facing fiber-to-the-home (FTTH) business.
Reuters reports that Telefónica's subsidiary in Brazil hasn't approached Oi yet.
Telefónica Brasil CEO Christian Mauad Gebara said the company is interested in opportunities in the fiber market, back in November when asked about the sale of Oi's assets.
According to sources, América Móvil's Claro and TIM Brasil could also consider offers.
In May, Oi said that it hoped to sell 40 percent of ClientCo in 2025 for R$4.8 billion ($976.5 million).
Founded in 1998 and formerly known as Telemar, Oi filed for bankruptcy back in 2016 for R$65bn (US$19bn) and has been looking to sell its biggest assets since. The company was put in what was then Brazil's biggest-ever bankruptcy protection.
Its mobile business was sold for R$16.5bn ($3.23bn) back in 2020 and split between Brazil's three big mobile operators TIM, Telefónica, and América Móvil, with TIM picking up the most assets. The deal closed earlier this year.
Earlier this year, Oi completed the sale of selected tower infrastructure to NK 108 Empreendimentos e Participacoes (NK 108) – an affiliate of Highline, which is a subsidiary of US private equity company DigitalBridge. The deal includes 8,000 telecom towers.
