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Brazil : TELEFONICA to acquire VIVENDI's GVT [TendersInfo (India)]
[September 20, 2014]

Brazil : TELEFONICA to acquire VIVENDI's GVT [TendersInfo (India)]


(TendersInfo (India) Via Acquire Media NewsEdge) Telefonica SA will buy GVT the broadband arm in Brazil of Vivendi SA in a deal worth around 7 billion euros or nearly $9 billion.

The move will help Telefonica challenge its rivals including Mexican billionaire Carlos Slim-owned America Movil SAB.

The deal will provide Vivendi with cash of 4.66 billion euros, a 7.4% stake in the Brazilian operations of Telefonica and a stake of 5.7% in Telecom Italia SpA.

Telefonica said it will help to fund its acquisition with a capital increase from its operations in Brazil.



The acquisition will boost Telefonica's share of the broadband market in Brazil to 30%, as against 32% by America Movil and 27% by Oi SA.

The sale of GVT allows Vivendi to continue reducing its assets in the phone industry.


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