British Firm Boosts Stake in Brazilian Telecom Oi Amid Restructuring
Ashmore Investment Advisors, a limited company registered in England and Wales, has increased its stake in Oi, a Brazilian telecommunications company. The British firm now holds 31,294,794 ordinary shares, representing 9.4% of Oi’s shareholding. This change comes as Oi undergoes judicial reorganization.
The increase in Ashmore’s stake results from the capitalization of credits held against Oi. This move aligns with the capital increase approved by Oi’s board of directors in meetings held on August 21 and November 4 this year. The decision reflects ongoing efforts to restructure the company’s finances.
In a related development, Brazil’s National Telecommunications Agency (Anatel) has unanimously approved a change in Oi’s fixed telephony service regime. The service will transition from a concession to an authorization model. This decision follows negotiations between Oi and Anatel, mediated by the Federal Court of Accounts (TCU).
The shift to an authorization model will allow Oi to discontinue fixed telephony services in areas where they have fallen into disuse. This change could save the company millions in maintaining outdated infrastructure. However, Oi must continue providing service until 2028 in 2,800 cities lacking alternative phone options.
British Firm Boosts Stake in Brazilian Telecom Oi Amid Restructuring
Oi’s President, Mateus Bandeira, highlighted the significance of this change. He noted that the company can now avoid maintaining costly, obsolete infrastructure. This includes payphones, copper cables, and renting 11 million utility poles for an outdated service.
The transition marks a crucial step for Oi’s recovery. Anatel’s decision aims to ensure a smooth shift to a sustainable model for both operators and consumers. It also guarantees voice service in areas with no other options.
Oi’s Turnaround: Brazilian Telecom Giant Emerges from the Red
This change grants Oi ownership of ‘reversible assets’ previously slated to return to the government. These assets include copper networks, telephone exchanges, and real estate. In exchange, Oi must invest approximately R$ 6 billion ($1.05 billion) in telecommunications infrastructure projects.
These investments will fund wireless internet networks for 4,000 schools, data center construction, and expansion of the country’s submarine cable network. These projects aim to enhance Brazil’s overall telecommunications infrastructure, benefiting both the company and the nation.
More: Brazil news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error
Brazil runoff, Sunday, October 25: Brazil runoff start time and results schedule. Latest: Brazil runoff polls, Flávio 51%, Lula 49%.