The Brazilian unit of international towerco IHS has acquired a controlling 51% stake in TIM Brasil’s fiber optics unit FiberCo, in a deal worth US$299m.
Subject to regulatory approval, the deal will see about Reais1bn of the Reais1.6bn deal price paid to TIM parent Telecom Italia, and the rest to FiberCo.
Sam Darwish, group CEO of IHS Towers, said in a statement: “I am delighted to announce this transaction with TIM as it marks a significant milestone in our Latin American growth trajectory and our ongoing relationship with TIM. In our African markets, we are already delivering fiber connectivity solutions and I am excited to transfer our knowledge to the Brazilian market and partner with one of the region’s leading mobile networks. By combining IHS’ engineering excellence with TIM’s exceptional market knowledge we will be well-placed to deliver fiber connectivity as demand in the region soars.”
The deal values FiberCo at Reais2.6bn and the unit’s asset base will include TIM’s FTTx secondary network infrastructure, covering 6.4m households. FiberCo will be responsible for the deployment, operations and maintenance of new fiber infrastructure for TIM, which will be the anchor tenant under a long term master services agreement.
TIM says this partnership will help to expand FTTx availability in Brazil more rapidly than the operator could do alone.
Pietro Labriola, TIM Brasil’s CEO, said: “This is a fundamental step in our fiber growth strategy. It will enable TIM to meet the growing demand for fiber services and place FiberCo in a unique position within the Brazilian market. Our selection of IHS as our partner, a company with exceptional operational expertise, provides us with the capabilities to deliver large-scale services with robust fiber and cutting-edge solutions.”
IHS, which mainly operates in Africa, has been expanding in Brazil with the recent acquisitions of Skysites and Centennial Towers Brazil.