Telefonica Brasil has raised R$16bn (US$5.3bn) in a share offering aimed at funding the US$9.3bn acquisition of Vivendi’s local broadband unit GVT.The company offered 243 million preferential shares at R$47(US$16.12) per share and 121 million common…
Telefonica Brasil has raised R$16bn (US$5.3bn) in a share offering aimed at funding the US$9.3bn acquisition of Vivendi’s local broadband unit GVT.
The company offered 243 million preferential shares at R$47(US$16.12) per share and 121 million common shares at R$38.47 (US$13.18) per share.
Itau BBAI, Morgan Stanley, BofA Merrill Lynch and Santander acted as global coordinators, while Bradesco BBI, BTG Pactual, Credit Suisse, Goldman Sachs, HSBC and JP Morgan served as joint bookrunners.
The capital increase was executed after the Brazilian regulators cleared the takeover, imposing a number of remedies to address competition concerns.
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.