News
Brazil’s fifth largest mobile operator carries a price tag of $300 million plus debt, according to local press.
TIM, Claro and a number of foreign investment firms are interested in buying Nextel’s Brazilian mobile operation, it emerged this week.
Brazil’s Folha de S. Paulo revealed that Nextel Brasil is on sale for US$300 million, plus the assumption of $600 million in debt, and said the aforementioned companies are examining financial documentation provided by Nextel to determine whether to make an offer.
Nextel itself has denied that it is up for sale and insists that the companies are looking at the information with a view to network-sharing, but Folha’s sources say that is not the case and that the companies are interested in an acquisition.
However, the paper admits that the process could have attracted companies that are simply interested in obtaining more information about their rival’s business, as well as genuine, interested buyers.
Nextel also approached Vivo and Sky Brasil about accessing the information it has made available, but neither is participating at present.
Meanwhile, Nextel Brasil CEO Francisco Valim continues to insist that the company is not for sale.
Folha quoted him as saying that he is focused on building up the company – cutting costs, optimising infrastructure and investing. The results are already starting to be evident, he said.
However, he conceded that while a sale is not the company’s goal, it is not an impossible outcome.
Nextel is the fifth largest mobile operator in Brazil, but it remains a long way behind the big four, with a market share of less than 1% at the end of November, according to regulator Anatel.
Its share is creeping up though, thanks to the addition of almost half a million customers over six months. Its customer base stood at 2.5 million at the end of November, compared with market leader Vivo’s 79.5 million.
