Telefónica closes the purchase of Oi's mobile assets in Brazil for 1,060 million

• Álvarez-Pallete: "Digitization is the first technological revolution that finds Spain in a leadership position"

• Brazil Telefónica, TIM and Claro manage to acquire Oi's mobile assets for more than 2,650 million

• Telecos Telefónica presents an offer for the mobile business of the Brazilian company Oi

Telefónica, Telecom Italia (TIM) and Claro have closed the purchase of Oi's mobile assets in an operation that has meant for the Spanish company the disbursement of 5,373 million Brazilian reais (1,063 million euros), as notified this Wednesday to the National Securities Market Commission (CNMV).

The Spanish has informed that today it has made the payment of about 4,885 million reais (966 million euros).

The remaining amount, equivalent to 10% of the payment made on this date, is withheld subject to certain price adjustments and

under the terms of the agreement.

The amounts indicated, as explained by the company, include a net cash position in the acquired company of approximately 83 million reais (16 million euros).

Likewise, Telefónica Brasil has assumed a complementary payment commitment for an amount of up to 115 million reais (23 million euros) subject to the fulfillment of certain objectives by Oi, of which 40 million reais (8 million euros) have been been paid this Wednesday.

Within the framework of the operation, Telefónica has acquired all the shares of the company Garliava, to which the assets of the mobile business of the Oi group assigned to the Brazilian subsidiary of Telefónica were contributed.

The company chaired by José María Álvarez-Pallete has made the payment of approximately 148 million reais (29 million euros) for certain transitory services that Oi will provide to Garliava and has signed a data transmission capacity agreement in the 'take- or-pay', with a net present value of 179 million reais (25 million euros), payable monthly for a period of 10 years.

With the operation,

, corresponding to 30% of the total base of mobile clients of the Brazilian group;

43 MHz of spectrum and agreements for the use of some 2,700 'sites' or mobile access locations.

The operation, approved with conditions by the Administrative Council for Economic Defense (CADE) of Brazil, involves a joint disbursement by the three main operators in the country of 16,500 million Brazilian reais (3,258 million euros).

This will mean the

South American country that, as a condition for the purchase, will have to cede the use of their networks to smaller operators.

For its part, the seller, which is in the process of judicial restructuring, will use the cash inflow to repay part of its debt.

Conforms to The Trust Project criteria

Know more

• Telephone

• Brazil

• Jose Maria Alvarez-Pallete