TIM SA Eyes $170M Buyback of I-Squared Fiber Stake

TIM SA Considers $170 Million Fiber Network Buyback

Brazilian telecommunications operator TIM SA is reportedly in discussions to repurchase a 51% stake in fiber-network business I-Squared. The potential deal is valued at approximately $170 million and would involve buying back the stake currently owned by IHS Towers.

Details of the Proposed Transaction

TIM SA previously controlled the fiber network when it operated under the name FiberCo. To advise on the potential acquisition, the Brazilian telecom firm has appointed Rothschild. Sources close to the matter suggest that the deal could receive approval as early as February 10.

Market and Strategic Implications

Regaining majority control of the fiber network would allow TIM SA to strengthen its infrastructure assets, a key strategic move to enhance its competitive standing in the Brazilian market. This action aligns with a broader industry trend of telecom operators seeking greater control over their core network infrastructure.

Summary and Outlook

Investors and market analysts are awaiting an official confirmation of the deal. The transaction's completion would likely influence the stock prices of TIM SA and IHS Towers and could signal further consolidation in the telecommunications infrastructure sector.

FAQ

Q: Who is TIM SA buying the stake from?
A: TIM SA is in discussions to buy the 51% stake from IHS Towers.

Q: What is the estimated value of the transaction?
A: The deal is potentially worth approximately $170 million.

Source: Investing.com