Telefonica expects to complete GVT acquisition by mid-2015 if all goes to plan

1 Sep 2014

BNAmericas writes that Telefonica is confident it will complete the takeover of Brazilian fixed operator Global Village Telecom (GVT) from Vivendi by mid-2015 – if all goes to plan. The Madrid-based carrier filed a notice to the stock market detailing its acquisition roadmap and the terms of its offer in the wake of Vivendi’s announcement that it had entered into exclusive talks with Telefonica over a deal – closing the door on rival Telecom Italia (TI).

In its roadmap, Telefonica says it expects to receive the necessary shareholder approval from Telefonica Brasil (Vivo) investors by October and the thumbs up from Anatel and the antitrust agency Cade next year. The Spanish giant has bid EUR7.45 billion (USD9.79 billion) for GVT, broken down as EUR4.66 billion in cash – funded through a capital increase for Telefonica Brasil – and 12% in share in the enlarged Telefonica Brasil, following said increase. Further, it is offering Vivendi the chance to exchange 4.5% in shares in the enlarged Telefonica Brasil operation for an 8.3% voting interest in TI – via shares owned by the Spanish parent in its Italian counterpart. With the three-month exclusive talks now underway, Telefonica hopes to ink a definitive agreement with the French media group in November.

Vivendi agreed to engage in three months of talks with Telefonica. If all goes well, Telefonica predicts that it will sign a definitive agreement with Vivendi in November.

Brazil,Telefonica, Telefonica Brasil (Vivo), Global Village Telecom (GVT), Vivendi,

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