Oi keen to merge with Sky Brasil

By:
Jason McGee-Abe
Published on:

Debt-ridden Brazilian operator Oi is reportedly set for a board meeting in December to discuss merger talks with Sky Brasil

Oi - SkyO Globo reports an unnamed source told the media outlet that Oi intends to pursue the merger talks in parallel to the operator’s debt restructuring next month, which were submitted in September and attracted strong criticism. 

"The union of Oi with Sky is on the agenda. Oi's solution in the medium and long term is consolidation," O Globo cited its source.

The reports state that the two parties previously entered into discussions last year under the supervision of Brazilian bank BTG Pactual, but negotiations failed to progress.

In June 2016, Oi filed for the largest bankruptcy request in Brazilian history after failing to reach an agreement with creditors. Oi and six of its subsidiaries have debts of 65.4 billion reais ($19.26 billion), according to a filing at the time. A month later, the US Bankruptcy Court gave the mobile operator protection against creditors while the company tries to restructure. These negotiations are ongoing.

In September, Valor Economico reported that America Movil may be keen on working with Oi. In the same month, Flavio Nicolay Guimarães, chief financial officer of Brazil's Oi, resigned from his post amid the fixed-line carrier's bankruptcy. GTB