Telefónica increases capital with heavy discount to buy GVT – Investing.com Spain

MADRID (Reuters) – Telefonica (MADRID approved a capital increase amounting to 3.048 million euros and a deep discount on the closing price on Wednesday in an operation that It will finance part of the purchase of the Brazilian operator GVT, a subsidiary of Vivendi (PARIS:).

The operator said Wednesday at midnight will issue 281 million new shares with preferential subscription rights for shareholders, which require 16 rights to buy a new action

The price of enlargement of 10.85 euros per share, representing a discount of 19.85 percent on Wednesday’s closing stock exchange, which probably will take the company to receive a harsh punishment in the Thursday’s session.

The funds will be used to sign another capital in its subsidiary Telefónica Brazil, which deliver some of the titles to Vivendi and use the other hand to finance 4.663 million cash paid to French operator, valued as a whole about 7,200 million euros operation.

Sources familiar with the operation told Reuters on Wednesday that the Brazilian subsidiary made a capital of 4,000 million dollars over the next days, which shall be signed by Telefónica in proportion to their share of 74 percent in the subsidiary.

Telefónica, which obtained as Wednesday approved with conditions antitrust Brazilian regulator for operation, wants to grow in this market, where it will have 100 million accesses after the integration of broadband operator.

EX CEO of GVT ride the AFFILIATE

The Spanish multinational company had previously announced the appointment of director delegate of GVT, Amos Genish, as president and CEO of its Brazilian subsidiary once run purchasing the broadband subsidiary of Vivendi in Brazil.

Genish be the CEO and current chairman of Telefónica Brazil, Carlos Valente, will remain as chairman of the Brazilian subsidiary but without executive tasks.

“In the near future, Valente assume new roles of representation in the Latin American group level,” said Telefónica in . Note

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