TIM SA has agreed to sell 51 percent stake in FiberCo to telecom tower company IHS Fiber Brasil valuing FiberCo at R$ 2.6 billion.
FiberCo’s initial asset base will consist of TIM’s secondary network infrastructure contribution covering approximately 6.4 million households, of which 3.5 million are FTTH and 3.5 million FTTC.
IHS, a telecommunications infrastructure provider focused on emerging markets and operating in 9 countries in Africa, Middle East and Latin America, owns more than 28,000 towers.
This transaction is expected to support TIM’s plan to accelerate the provision of fiber connectivity services to B2C and B2B customers.
FiberCo aims to reach 8.9 million FTTH households within 4 years. FiberCo will also participate in other infrastructure projects, such as FTTSite, together with TIM.
The deal will enable TIM to deconsolidate a relevant part of its Capex, resulting into positive effect on its cash flow. In parallel, TIM expects to use the proceeds of this transaction to help meeting its investment obligations, such as the acquisition of Oi Movel’s assets.