Argentina’s Oi enters revised stalking horse with Tim Participacoes offerors for mobile assets

By Rebecca Melvin

New York, Sept. 8 – Oi SA has entered into a revised agreement with a group of offerors including Tim Participacoes SA for the sale of its Mobile Assets UPI, according to a Tim SA news release.

The offerors also include Telefonica Brasil SA and Claro SA.

Under the agreement, which replaces a revised binding offer presented to Oi Group on July 27, the R$16.5 billion purchase price, including R$756 million for services to be provided in the 12-month transition period by Oi Group to the offerors, was ratified, and the offerors committed to enter into long-term contracts for long-term transmission services contracts.

As a result, the offerors were effectively qualified by Oi Group to participate in the competitive process as the stalking horse bid, which should be reflected in a proposed adjustment of Oi's reorganization plan, to be deliberated at a creditors’ general meeting on Sept. 8.

As stalking horse, the offerors have the right at their discretion to cover the highest value offer that may be presented in the competitive process.

Oi is a Rio de Janeiro-based telecommunications service provider. It filed for Chapter 15 bankruptcy on June 21, 2016 under case number 16-11791. Tim Participacoes is a mobile telecom services provider based in Rio de Janeiro.

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