The agreement, valued at BRL 41mn (approximately US$7.5 mn), is a critical step in Oi’s ongoing efforts to restructure its business and tackle its substantial debt burden.
A path to debt reduction
Oi has been navigating financial difficulties for several years. Once one of Brazil's largest telecommunications companies, the company filed for bankruptcy protection in 2016, weighed down by debts amounting to US$19bn. Since then, Oi has been systematically selling off major assets to chip away at its remaining debt, which is now estimated to be around US$4.2bn.
This recent transaction with American Tower involves the transfer of 100% of the shares in a Special Purpose Entity (SPE) that holds the selected real estate and telecom towers. This is part of a broader debt-for-equity arrangement, enabling Oi to reduce its outstanding obligations to ATC. While the exact number of towers involved in the deal has not been disclosed, it is seen as another step in the company’s long-term restructuring strategy.
For American Tower, this acquisition is part of its expansion in Brazil, where it already operates more than 17,000 telecom towers. Brazil represents ATC’s largest market in Latin America, and the company’s growing portfolio strengthens its infrastructure position in the country. This move also highlights the growing demand for telecommunications infrastructure as Brazil's digital economy continues to expand. Reports in teletime suggest that American Tower has been commercially operating the assets since 2013.
Regulatory approvals and Oi’s battle with bankruptcy
The transaction has already received approval from Brazil's competition authority, the Administrative Council for Economic Defense (CADE). However, it is still subject to final approval from the national telecommunications regulator, Anatel. Industry sources suggest that Oi could be in discussions for similar deals with other tower infrastructure companies, further signalling its intent to stabilise its financial footing.
In July 2023, Oi also completed the sale of around 8,000 telecom towers to Digital Bridge's Highline, a move aimed at streamlining its operations and refocusing on core assets. The company finally exited bankruptcy protection in December 2022, after six years of restructuring.
Despite these significant asset sales, Oi still faces considerable challenges. With many of its high-revenue businesses sold, including its mobile operations and fibre broadband unit, the company has fewer cash-generating assets remaining. This raises questions about how Oi will sustain its operations and meet its remaining financial obligations. Nevertheless, the company’s leadership has signalled a commitment to continue restructuring and reshaping its business model to survive in a highly competitive market.
Oi's agreement to sell tower and property assets to American Tower Brazil marks another chapter in its long road to financial recovery. While the deal represents only a fraction of the company’s remaining debt, it demonstrates Oi's determination to stabilise its finances and reshape its operations. For American Tower, the acquisition further solidifies its prominence in Brazil's growing telecom infrastructure market, positioning the company to meet the surging demand for mobile and internet connectivity across the country. However, with fewer assets left to monetise, Oi’s future remains uncertain, and the company faces a challenging path forward as it continues to restructure.
