Alliança Healthcare Sale: Debt, Restructuring & Future Plans

São Paulo – Geribá, a Brazilian investment firm, has taken control of Alliança Saúde, a diagnostics clinic network, as part of a broader strategy to address outstanding debts linked to the acquisition of Ligga Telecom, a regional internet provider. The move signals a period of restructuring for Alliança Saúde, which is currently valued at approximately R$745 million (roughly $147 million USD) on the Brazilian stock exchange, bolstered by expectations of a change in ownership.

The complex financial maneuvering stems from a debt of R$1.3 billion (approximately $258 million USD) incurred by an entrepreneur to purchase Ligga Telecom. That debt was secured using shares of Alliança Saúde as collateral, with creditors including Prisma, Farallon, BTG Pactual, and Santander. The sale of Ligga Telecom to Brasil TecPar, expected to finalize between July and August, will not fully cover the outstanding debt, necessitating the sale of Alliança Saúde.

Ligga Telecom Sale and Brasil TecPar’s Expansion

Ligga Telecom, originally established following the privatization of Copel Telecom, is being sold to Brasil TecPar in a deal valued at R$495 million (approximately $98 million USD). Brasil TecPar has also agreed to assume an additional debt of R$1.2 billion (approximately $238 million USD). The transaction is subject to approval from the Administrative Council for Economic Defense (Cade) and the National Telecommunications Agency (Anatel). According to reports, Ligga Telecom possesses approximately 50,000 kilometers of fiber optic cable and serves 340,000 customers in the Paraná state, including public institutions like schools and government offices.

The acquisition will significantly bolster Brasil TecPar’s position in the Brazilian fiber-to-the-home (FTTH) market. Analysts estimate that the combined entity will reach approximately 1.69 million fixed broadband connections, making it the fourth-largest operator in Brazil. In Paraná, Brasil TecPar will turn into the third-largest provider with around 385,000 customers.

Geribá’s Strategy: Turnaround Through “Right Sizing”

Geribá’s acquisition of Alliança Saúde mirrors a previous successful turnaround. In 2017, the firm purchased Polo Filmes from Unigel, a company burdened with R$600 million (approximately $119 million USD) in debt. Geribá improved Polo Filmes’ cash generation, paid off the debt, and subsequently sold the company to Innova, a chemical industry firm owned by Lírio Parisotto, for R$610 million (approximately $121 million USD).

The plan for Alliança Saúde, described as “right sizing” by a source close to the operation, involves a similar approach. Alliança Saúde is currently leveraged, facing fiscal debts and other liabilities, and has struggled to integrate previous acquisitions effectively. The focus will be on identifying profitable assets and streamlining administrative expenses. Initial indications suggest that there will be no immediate changes to the company’s leadership.

Alliança Saúde’s stock has limited liquidity, with only 6.6% of its shares currently available for trading. Despite this, the market anticipated a premium on the sale price, though the bidding process proved less competitive than expected, attracting interest primarily from existing players in the healthcare sector.

Looking Ahead

The completion of the Ligga Telecom sale and the restructuring of Alliança Saúde are key steps for Geribá in resolving its financial obligations. The focus now shifts to implementing the “right sizing” strategy at Alliança Saúde, with the goal of improving its financial performance and positioning it for future growth. The next major milestone will be the final approval of the Ligga Telecom acquisition by Cade and Anatel, anticipated in the coming months.

This is a developing story. Readers interested in following these developments can find updates on the websites of G1, XPI, and LatAm Tech Weekly.

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