DLA Piper advises on ‘take or pay’ contract as part of BTG Pactual’s acquisition of Globenet

DLA Piper has advised an infrastructure investment fund managed by BTG Pactual, the Brazilian investment bank, asset manager and wealth manager, on the central ‘take or pay’ contract that is part of the acquisition by BTG Pactual of the Globenet submarine cable network from Brazilian telecoms operator Oi. The acquisition is valued at more than $750m.

Oi has sold all of its interest in Brasil Telecom Cabos Submarinos and its subsidiaries, located in Venezuela, Colombia, Bermuda and the US, which are jointly known as Globenet.

The acquisition includes the transfer of a 22,500km system of fibre-optic submarine cables held by Globenet linking connection points between the US, Bermuda, Colombia, Venezuela and Brazil, as well as supply of capacity by Globenet to Oi and its subsidiaries through a fixed-price long-term ‘take or pay’ contract with volume guarantees.

The work was led by London-based telecoms partner Mike Conradi and supported by colleagues Gianluca Bacchiocchi, a partner in the firm’s Chicago office, Sydney White, of counsel in Washington DC, Andrew Davies, corporate partner in Leeds and Gerry Rokoff, tax partner in New York.