January 24, 2020 / 4:40 PM / a month ago

UPDATE 1-Brazilian telecom Oi sells its 25% stake in Unitel to Sonangol - filing

(Adds Oi comments, background)

SAO PAULO, Jan 24 (Reuters) - Brazilian telecom carrier Oi SA has sold its 25% stake in Unitel to Angola’s state-oil company Sonangol for $1 billion, according to a securities filing on Friday.

Oi, which filed for bankruptcy protection in June 2016, said it will receive $699.1 million upfront as part of the deal with Sonagol.

The carrier will use the proceeds of the sale for its business in Brazil, raising its cash flow, the securities filing said.

The sale of Unitel is part of Oi’s efforts to divest non-core assets such as towers, data centers, real estate, besides Unitel.

Earlier in December, Oi’s chief operating officer said the company had hired financial advisers to put a value on its mobile unit, which has drawn the interest of all three competitors: Telefonica Brasil SA, TIM Participações SA and America Movil’s Claro. (Reporting by Carolina Mandl Editing by Chizu Nomiyama and Tom Brown)

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