Oi signs confidentiality agreement with China Telecom

By:
Natalie Bannerman
Published on:

Oi confirms rumour of talks with China Telecom by signing a confidentiality agreement and 'evaluating possible deals'

Brazil’s Oi confirms talks with China Telecom with the signing of a confidentiality agreement.

The news follows on from reports earlier this week indicating that China Telecom were interested in taking part in a capital increase for the bankrupt Oi or even possibly acquiring the Brazilian telco.

As reported by Reuters, Oi’s CFO Ricardo Malavazi, while speaking at an event in Rio de Janeiro, told reporters that the agreement had been signed with no deadline and that its goal "is for evaluating possible deals”. He added that negotiations with China Telecom have no fixed deadline and that the legal recovery plan for Oi is independent to these negotiations.

Malavazi went on to say that the board of directors would decide the capital increase and it’s unlikely that any decisions with China Telecom would be reached before 9 October.

Oi and its six subsidiaries filed for $19bn in bankruptcy protection in June of last year – the Brasilian regulator Anatel, is one of its creditors and is expected to vote on a settlement.