BTG Pactual faces Pimco over R$ 4.5B bid for Oi's V.tal stake

Funds linked to Banco BTG Pactual remain locked in a billion-real legal dispute with Pimco and other creditors over the bankrupt estate of Brazilian telecom operator Oi. At the center of the conflict is Oi's 27.26% stake in digital infrastructure company V.tal, which BTG-linked funds already control.

In an auction held in early March, BTG-linked funds placed the sole bid of R$ 4.5 billion for the holding, alongside a potential R$ 500 million earnout tied to a future initial public offering. Pimco and foreign creditors including SC Lowy and Ashmore challenged the offer, arguing it fell far short of the R$ 12.3 billion floor set in the auction notice and degraded guarantees backing their loans.

Although Judge Simone Gastesi Chevrand approved the acquisition on April 1 after Oi's judicial administrator presented a favorable opinion from G5 Partners, an appeals court suspended the transaction in June following creditor challenges. The transfer remains frozen even after the court confirmed Oi's bankruptcy in August.

BTG argues that the offer accurately reflects a minority stake in a private company with low liquidity and an insolvent seller. Securing the remaining 27.26% equity would grant BTG governance rights held by Oi, including veto powers over major mergers, acquisitions and changes to V.tal's dividend policy.