Brazil carrier Oi expects to raise up to $2bn with non-core asset sales

SAO PAULO: Brazilian telecom carrier Oi SA said on Tuesday it expects to raise between 6.5 billion reais and 7.5 billion reais ($1.73 billion - $2.00 billion) by selling non-core assets in a newly launched strategic plan.

The company, which filed for bankruptcy protection in June 2016 to restructure approximately 65 billion reais of debt, also said in a securities filing it sees revenues growing above 2% per year between 2019 and 2024.

The divestments are expected to occur between this year and March 2021.

Oi said it will now focus mainly on fiber, in order to provide broadband, wholesale, TV and mobile services to clients going forward.

The company said it sees its earnings before interest, taxes, depreciation and amortization (EBITDA) at between 4.5 billion reais and 5 billion reais in 2019, and growing between 15% and 20% per year between 2019 and 2021.

A gauge of operational profit, Oi's EBITDA is expected to be mainly driven by high-speed fiber-to-the-home (FTTH) broadband service in the coming years.

The carrier has hired Boston Consulting Group, Oliver Wyman and Bank of America to outline its strategic plan.