CORRECTED-UPDATE 1-Brazil's TIM to buy majority stake in I-Systems in $183 mln deal
Asure Software, Inc. ASUR | 8.45 | +1.32% |
IHS Holding Ltd. IHS | 8.29 | +0.48% |
Corrects typo in company name, IHS, in paragraph 1
SAO PAULO, Feb 11 (Reuters) - Brazilian telecoms operator TIM SA TIMS3 board approved a share purchase agreement with IHS Fiber Brasil to buy 51% of the total share capital of I-Systems for 950 million reais ($182.75 million), the company said on Wednesday.
I-Systems will become a wholly-owned subsidiary of TIM once the transaction is concluded, with TIM holding all of its shares, the telecoms operator said in a statement.
TIM, which is majority owned by Telecom Italia TLIT.MI, once controlled I-Systems, then called FiberCo.
TIM sold its stake to independent communications infrastructure company IHS Towers in 2021.
"This move positions TIM more strategically to seek potential future movements in the FTTH (fiber-to-the-home)scenario, maintaining a performance oriented towards profitability and cash generation," TIM added.
I-Systems totals about 9 million homes passed, according to the filing.
The operation is subject to regulatory approval.
Reuters reported TIM's intentions earlier this month citing sources.
($1 = 5.1985 reais)