TIM expects the acquisition of part of Oi’s mobile operations to create R$16 billion to R$19 billion of global value for the company.
TIM, which is controlled by Italy’s Telecom Italia, said last night that the estimate takes into account commercial and infrastructure synergies.
According to TIM, 45% of synergies should be captured by 2030.
TIM agreed to buy Oi’s mobile operations in an auction at the end of 2020, when it made a joint offer of BRL 16.5 billion with rivals Telefônica Brasil and Claro, a subsidiary of Mexico’s América Móvil.
The deal was completed last week after extensive regulatory scrutiny. TIM’s share in the national market now reaches 27%, from 20% at the end of last year.
TIM said in a market presentation that the agreement should increase the company’s net revenue and operating performance measured by earnings before taxes, interest, amortization and depreciation (EBITDA) by R$1.8 billion and R$1.1 billion. billion, respectively, for the remaining eight months of 2022.
“The acquisition is a game-changer for TIM… The acquired spectrum and network will reduce future Capex needs (capital expenditures) and increase cash flow generation”, added the company.
