The Brazilian unit of Telefonica has set a new timeline for its planned share offering to fund its acquisition of local broadband provider GVT from French media group Vivendi.
According to a prospectus published yesterday, Telefonica Brasil, which…
The Brazilian unit of Telefonica has set a new timeline for its planned share offering to fund its acquisition of local broadband provider GVT from French media group Vivendi.
According to a prospectus published yesterday, Telefonica Brasil, which trades as Vivo, plans to price 113 million ordinary shares and 220 million preferential shares on 27 April, distributing them on the following day and listing them on Sao Paulo’s stock exchange on 29 April.
The consortium working on the transaction comprises Itau BBA, Morgan Stanley, BofA Merrill Lynch, Santander, Bradesco BBI, BTG Pactual, Credit Suisse, JP Morgan, Goldman Sachs and HSBC.
Last month, the €7.24bn (US$9.3bn) GVT deal was approved by local regulators, which imposed a number of remedies to address competition concerns.
Brazil’s telecoms agency Anatel approved Telefonica’s transfer of 8.3% of its voting shares in Telecom Italia (TI), the owner of rival wireless carrier TIM Brasil, to Vivendi, which will also receive 11.3% of Telefonica’s preferential shares in Vivo as part of the deal.
However, the country’s competition authority Cade said that the Spanish telco must divest its remaining 6.4% voting shares in Telecom Italia, and that Vivendi must gradually reduce its interest in Vivo, so that they each only hold shares in a single Brazilian telco.
