TIM, Vivo, Claro seek US$606 million Brazil Oi deal haircut

TIM, Vivo, Claro seek US$606 million Brazil Oi deal haircut
FILE PHOTO: A logo of the mobile phone network company Claro is seen in Bogota, Colombia December 12, 2019. REUTERS/Luisa Gonzalez

SAO PAULO: TIM SA, Telefonica Brasil and Claro have asked that the price of their deal to buy rival telecom Oi SA’s mobile operations in Brazil be lowered by 3.2 billion reais (US$605.05 million), securities filings showed on Monday (Sep 19).

Telecom Italia’s TIM, America Movil’s Claro and Telefonica’s Vivo had agreed to acquire Oi’s mobile operations in an auction in late 2020 with a joint bid of about 16 billion reais.

However, post-deal analysis showed the need for an adjusted closing price, TIM said in a securities filing, citing divergences in working capital, capital expenditure and net adds data that were seen in documents available only after closing.

In a separate filing, Oi said it strongly disagreed with the request to cut the price by about a fifth, which it dubbed as based on technical and procedural errors, and that it will take measures to contest it.

Source: Reuters/st