Oi (OIBR3) has transferred control of its fiber-optic unit, ClientCo, to V.tal in a deal valued at R$ 5.7 billion ($950 million). This complex transaction, finalized on March 5, 2025, marks a significant milestone in Oi’s judicial recovery process.
The sale, approved after two auction rounds and overseen by the Rio de Janeiro Court of Justice, reflects Oi’s efforts to restructure its operations and reduce debt. The deal does not involve direct cash payments.
Instead, V.tal employed a combination of share issuance, debt forgiveness, and debenture transfers to acquire ClientCo. The company issued over 4.76 billion new shares worth R$ 4.99 billion ($832 million).
It also forgave R$ 381.75 million ($64 million) in extrajudicial credits owed by Oi. Additionally, V.tal transferred 300.87 million debentures valued at R$ 334 million ($56 million).
These measures granted V.tal full ownership of ClientCo while leaving Oi with a minority stake of approximately 27.5% in V.tal’s capital. This transaction is pivotal for Oi’s recovery plan, which aims to generate liquidity to pay creditors and stabilize operations.
The sale aligns with market trends favoring neutral network operators like V.tal, which provide infrastructure to multiple telecom companies under competitive terms.
Oi’s Strategic Asset Divestment and V.tal’s Market Expansion
V.tal, controlled by BTG Pactual, now strengthens its position as Brazil’s largest neutral network operator with over 400,000 kilometers of fiber-optic infrastructure. In another move to streamline its portfolio, Oi also sold its subscription TV assets to Mileto Tecnologia for up to R$ 30 million ($5 million).
Mileto will pay R$ 10 million ($1.67 million) within 60 days and up to R$ 20 million ($3.33 million) based on subscriber retention over the next two years. These transactions highlight Oi‘s ongoing efforts to navigate its second judicial recovery process since 2016.
Once Brazil’s largest telecom operator, Oi has faced mounting debts exceeding R$ 65 billion ($10.83 billion). By divesting non-core assets like ClientCo and its TV business, Oi seeks to focus on financial sustainability while retaining stakes in high-growth ventures like V.tal.
This strategy underscores the broader transformation of Brazil’s telecom sector as companies adapt to rising broadband demand and the expansion of neutral networks.
For Oi, these deals represent both immediate financial relief and long-term growth opportunities through its minority position in V.tal’s expanding operations.