Oi, Brazilian telecom company Oi is preparing to transfer several of its towers and properties to American Tower (ATC) as part of a partial debt repayment arrangement with the infrastructure provider. The asset transfer, referred to as "dação de ativos" (asset handover), is a key element of Oi's judicial recovery plan and has been accepted by American Tower.
The transaction was given initial approval on Tuesday, 17 September by Brazil's Administrative Council for Economic Defence (Cade), although final approval from the National Telecommunications Agency (Anatel) is still required.
According to reports from TELETIME, similar deals are in progress with other tower infrastructure companies that hold credits against Oi, including SBA and IHS. These deals are part of the company’s second judicial recovery process.
The deal with American Tower involves setting up a Special Purpose Entity (SPE) that will hold the rights to specific assets. These include towers that have been commercially operated by ATC since 2013, as well as selected properties. The exact number of towers and properties involved in the transfer has not been disclosed in Cade's report.
This move was anticipated in Oi’s recovery plan, approved in April, as part of the company's strategy to restructure its debts. As part of the plan, Oi renegotiated payment terms with tower companies, extending payments until mid-2027. After that, existing contracts can be cancelled. The plan also allows for the transfer of ownership of towers and properties valued at up to R$40mn (US$7.29mn) as an alternative form of debt settlement.
Cade’s assessment found that since American Tower has already been operating the towers included in the deal since 2013, the transfer would have no competitive impact. Similarly, the sale of the properties will not affect the current market dynamics, and the transaction was approved without restrictions.
For American Tower, the deal offers a way to offset financial losses related to Oi’s recovery process by acquiring ownership of these valuable assets.
