BTG funds get preferential status in bid for Oi’s fiber unit

SAO PAULO: Brazil telecom Oi SA said on Monday it had accepted a binding offer from funds managed by Banco BTG Pactual to sell a 57.9% stake in its fiber optic business for 12.9 billion reais ($2.28 billion), obtaining preferential status in the deal.

The transaction, part of Oi’s bankruptcy restructuring, puts the enterprise value of the fiber optic business at 20 billion reais.

Oi said it will receive 6.5 billion reais from the sale; the remaining amount will be injected into the fiber unit, named InfraCo.

Others may still bid for InfraCo, but BTG’s funds have the right to cover the offer in an auction yet to be scheduled.