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Another Chinese player reportedly planning move for majority stake pending Brazilian telco’s debt restructuring
China Telecom has become the second Chinese player linked with a move for Brazil’s Oi.
According to a Reuters report late last week, China Telecom could spend up to US$6 billion (€5.19 billion) on a majority stake in Oi.
However, a source cited by the newswire said a bid will only be made once Oi has agreed a debt restructuring deal with its creditors.
Oi filed for bankruptcy protection in June 2016 and has since failed to agree on a recover plan with debt holders. Brazil’s telco watchdog Anatel is reportedly Oi’s largest single creditor, the operator is said it to owe it around $3.5 billion in fines.
According to Reuters, Oi’s creditors are due to meet on Friday to decide on a restructuring plan.
China Telecom is not the only Chinese player linked with Oi.
Brazilian business magazine Exame claimed in September that China Mobile is keen to invest in Oi, and has met with officials from Anatel. The report claimed that China Mobile wants Oi’s Anatel fines wiped off the slate, and is exploring the potential sale of Oi’s fixed-line network.
