Brazil's Algar Telecom, U.S. fund Digital Colony to make joint bid for Oi's mobile unit - paper

Credit: REUTERS/PAULO WHITAKER

SAO PAULO, July 21 (Reuters) - Brazilian telecoms firm Algar Telecom SA CTLE.UL has joined efforts with U.S. fund Digital Colony to make a bid for the mobile unit of bankrupt carrier Oi SA OIBR4.SA, local newspaper Valor Economico said on Tuesday, citing two unnamed sources.

The bid competes with at least one other offer jointly presented by the country's major telecoms operators: TIM Participacoes S TIMP3.SA, Telefonica Brasil SA VIVT4.SA and America Movil's Claro AMXL.MX, the media outlet added.

The three carriers proposed the minimum price of 15 billion reais ($2.81 billion) set up by Oi for its mobile unit and certain conditions that could imply a discount, the sources told Valor.

Besides U.S. fund Digital Colony, which has been actively investing in telecommunications and infrastructure assets in Brazil, Algar Telecom is also backed by Singapore's sovereign wealth funds GIC, which holds a 25.3% stake in the company, the newspaper added.

Swiss bank UBS UBSAG.UL had been hired to assist Algar in the competitive process for Oi's mobile businesses, the report said.

($1 = 5.3288 reais)

(Reporting by Gabriela Mello; Editing by Bernadette Baum)

((Gabriela.Mello@thomsonreuters.com; +55 11 5644 7553; Reuters Messaging: gabriela.mello.reuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.