Oi investigates sale of its pay TV business

Monday, August 31st, 2020 
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NOTICE TO THE MARKET

  • Oi S.A. – In Judicial Reorganization
  • Corporate Taxpayers’ Registry (CNPJ/ME) No. 76.535.764/0001-43
  • Board of Trade (NIRE) No. 33.3.0029520-8
  • Publicly-Held Company

RIO DE JANEIRO — Oi S.A. – In Judicial Reorganization (“Oi” or the “Company”) hereby informs its shareholders and the market in general that, further to the Material Fact disclosed on August 13, 2020 and in line with the implementation of its Strategic Transformation Plan, the Company has initiated a market sounding process to prospect investors interested in acquiring its paid TV business, including all infrastructure required to provide services through the DTH technology, through the transfer of assets and liabilities (including the payment commitments of agreements related to the DTH and IPTV services, such as satellite capacity).

The Company also informs that it has engaged BTG Pactual Bank as its financial advisor to carry out the market sounding process, aiming at reaching the largest possible number of interested parties.

The beginning of the market sounding process is aligned with the proposed Amendment to the Judicial Reorganization Plan (the “Amendment to the JRP”), which the Company filed with the 7 th Corporate Court of Rio de Janeiro (the “RJ Court”) on August 13, 2020 and which provides for the disposition of an isolated production unit encompassing its paid TV business (the TVCo UPI”) through a competitive process, in compliance with Law No. 11,101/2005 (the “LRF”), to be carried out in due course through the submission of closed proposals by the interested parties, after the approval of the Amendment to the JRP at a General Creditors’ Meeting and its subsequent ratification by the RJ Court.

The disposition of the TVCo UPI will ensure to the Oi Group the execution of its divestment strategy in the paid TV business based on DTH technology, while allowing the retention of a material stake in the generation of content revenue arising from the provision of paid TV services via IP protocol (IPTV), based on platforms and equipment with IPTV technology which shall remain as property of the Company.

Oi reiterates its commitment to comply with its Strategic Plan and to focus on becoming the largest provider of telecommunications infrastructure in Brazil by expanding fiber optics and high-speed internet, offering businesses solutions and infrastructure to enable the evolution to 5G in the country, with a focus on businesses with greater value-added, growth prospects and a vision for the future.

The Company will keep its shareholders and the market informed of any development regarding the subject matter of this Notice to the Market.

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