Telefónica to buy Brazilian Vivendi and GVT has established itself as … – RTVE

Telefónica to buy Brazilian Vivendi and GVT has established itself as … – RTVE

RTVE..es / AGENCIES

Phone and the French group Vivendi have signed on Friday the “definitive” agreement for sale Brazilian Global Village Telecom (GVT) to the Spanish operator amounting to 4663000 euros payable in cash, plus 12% of the share capital of Telefónica Brazil after its integration with GVT .

The two companies were negotiating exclusively from the August 29 sale of GVT amending had also made an offer Telecom Italia . However, Vivendi decided to negotiate exclusively with Telefónica the sale of its Brazilian subsidiary after finding that the offer of the Spanish responded “better” to “strategic and financial” group goals and interests of their shareholders.

The cash payment of the transaction will be financed through a capital increase at Telefónica Brazil which will involve the matrix by further extension to cover the disbursement the proportional part corresponding to its 74% stake in its Brazilian subsidiary.

Vivendi accepts into Telecom Italia

This operation has a second phase , in which Vivendi accepts Telefonica’s bid for purchase 1,110 shares of common stock that the Spanish have in Telecom Italia, equivalent to 8.3% of the capital voting in the Italian company and 5.7% of its share capital.

In return, Vivendi yields a 4.5% of the capital who will receive the company resulting from the integration Telefonica Brazil and GVT. This capital represents all common shares received by Vivendi, SA and a number of preferred shares -representativas 0.7% of that class of shares -.

The closing of the transaction is subject to obtaining authorizations relevant regulatory. If achieved, the final result for Vivendi is to keep a 7.4% of the share capital of the company resulting from the integration of Telefónica Brazil, GVT, in addition to 4,663 million euros in cash.

As for this deal Telefónica will his departure from Telecom Italia , an interest already recently showed its chairman, César Alierta. However, the aim of the Spanish company will still take time to materialize.

This is because in July, Telefónica issued bonds to three years mandatorily exchangeable for shares of Telecom Italia value of 750 million euros.

So The Spanish controlled 14.8% of Telecom Italia , in which it was estimated that when bonds are disbursed keep a share of between 8.3 and 9.4%.

The statistics given by Telefónica is that after the issuance of that bond, you would get 8.4% of Telecom Italia, the fair participation has agreed to acquire Vivendi.

figures Telefónica Brazil and GVT

According to the company that César Alierta chairs, the operation will generate synergies of at least 4,700 million. The new Telefónica Brazil resulting from the integration with consolidated GVT leadership as integrated communications in Brazil operator. The Spanish stressed that this operation allows it to strengthen its position in one of its key markets and enhance its growth profile and financial flexibility.

GVT has a important new generation network , with over 10.4 million homes in 21 Brazilian states and 2.5 million broadband customers , most of them out of Sao Paulo .

Ssegún Vivendi, the operator had 772,438 subscribers end of June, up 52% ​​from a year earlier. In addition, during the first half of this year, the Brazilian company launched its services in three Brazilian cities, so that already covers 153 (146 in June 2013) and has also launched the network optical fiber at several key points in the city of Rio de Janeiro, as happened in Sao Paulo and Curitiba.

In the first half, GVT billed 2,700 million reais (839 million euros ) , 12.8% in the Brazilian currency in the first half of 2013 . Gross operating profits (EBITDA) grew by 10.5% to 1,000 million reais (329 million euros), which represented a margin rate of 39.2%, the highest of the telecom operators in Brazil.