Brazil telco Oi transfers towers, properties to American Tower

Brazilian debt-ridden telco Oi closed a deal worth 41mn reais (US$7.2mn) to transfer towers and real estate to American Tower, according to a document filed by the operator with the local securities regulator.

The number of towers and properties involved in the transaction were not disclosed.

In the filing, Oi said the contract with American Tower provides for the transfer of 100% of the shares of a real estate special purpose vehicle (SPE). 

This is a process that was already underway due to active debts that Oi had with American Tower.

The transaction was approved by antitrust regulator Cade on September 17, said the telco, but it is still subject to certain conditions.

These include the successful adaptation of Oi's fixed telephony concession to a private regime known as authorization, which is expected to unlock resources for the telco. A meeting to discuss Oi's concession adaptation will be held by regulator Anatel on October 25.

If the adaptation does not occur by the stipulated date, the contract with American Tower may still be validated by a request for prior approval from Anatel, Oi said.

American Tower planned to invest over US$150mn in Latin America this year. In Brazil, its largest LatAm market, the company is the leader and operated 22,670 towers as of end-June.

This is not the first time Oi offloads towers.

In August 2022, as part of Oi’s first judicial reorganization, DigitalBridge’s telecoms tower subsidiary Highline was the winner of a bidding process for the sale of 8,000 towers related to the telco's fixed operation, agreeing to pay 1.7bn reais.

IHS Towers and American Tower, which had been reported as having an interest in the towers, did not present bids.

In November 2020, Highline paid 1.06bn reais for 637 mobile phone towers and 222 passive infrastructure points, installed in shopping malls, hotels and other locations, belonging to Oi.