China Telecom may invest up to $6 billion for majority stake in Oi

By:
Natalie Bannerman
Published on:

China Telecom is reportedly ready to invest $6 billion in Brazilian telecoms company Oi

China Telecom is reportedly considering investing 20 billion reais ($6 billion) to acquire a controlling stake in Oi, the Brazilian telco.

According to Reuters, sources close to the deal have said that a potential deal would only happen if Oi, which filed for bankruptcy over a year ago, settles its disputes with creditors.

A creditor’s assembly will take place on 10 Nov and will decide on a restructuring plan for 65 billion reais ($20 billion) in debts.

Neither China Telecoms nor Oi have officially commented on the report.

Only last week Reuters reported that China Telecom and US private equity company TPG met with Brazil’s solicitor general to discuss taking over Oi.

In addition, China Telecom are said to be offering to build a fibre optic cable network to over 20,000 municipalities.

China Telecom was first rumoured to have an interest in acquiring Oi back in September, by the end of the same month Oi had signed a confidentiality agreement with China Telecoms while negotiations took place as confirmed by Oi’s CFO Ricardo Malavazi.