Representatives of China Telecom and the TPG fund met with Brazil’s General Procurator, Grace Mendonça, to present their proposal to acquire the Brazilian telecommunications company Oi, which is currently in judicial recovery.
According to the newspaper Folha de S. Paulo, the companies are willing to invest a capital of R $ 10,000 million (USD 3,058 million), once the protection for bankruptcy is lifted. The groups conditioned the offer to the approval in the congress of a law that transforms the telephony concession into authorization, and the negotiation, separately, of the debt of about R $ 20,000 million (USD 6,117 million) in fines that are pending with the regulator (Anatel).
If the conditions materialize, China Telecom will intend to increase the transmission capacity of the high-speed cables of the Oi network, bringing FTTx to customers in more than 2,000 municipalities. In more competitive urban centers, such as Rio de Janeiro and the main capital cities, the idea is to implement FTTH. In its article, Folha de S. Paulo indicated that once this stage is over, the Chinese company would discuss a possible union with the telecom operator TIM (Telecom Italia).