RIO DE JANEIRO, BRAZIL – Oi has officially sold its stake in Unitel to the state-owned oil company Sonangol. The Brazilian company is under judicial reorganization and has been selling off non-essential assets. It held 25 percent of the Angolan operator’s shares and the transaction totaled US$1 (R$4) billion.
Oi was to be paid R$699.1 million of the total price on Friday, January 24th. The oil company Sonangol had pre-paid US$60.9 million; the remaining US$240 million will be credited by July 31st, 2020, with a minimum monthly payout of US$40 million as of February.
The sale of the Angolan operator is part of Oi’s strategy of selling non-essential assets and somewhat relieves Oi’s accounts. In November, it recorded a negative cash flow generation, 14.3 percent lower than in October.
Oi is undergoing a judicial reorganization proceeding and needs money to implement its strategic plan, which involves expanding the fiber optic network and focusing on residential services.
Mobile operation sale should help Oi
Oi currently relies on a financial advisor to assess the real worth of its mobile operation. Competitors Claro, TIM, and Vivo have not denied interest in a potential negotiation.
By the end of January 2020, the company will undergo a transition in its presidency: Rodrigo Abreu, the former CEO of TIM, will take over as Oi’s CEO, in place of Eurico Teles.