Spanish telco Telefonica has made a public tender offer to buy the outstanding common stock in Brazilian telco Vivo.
A notice of the tender offer was published on the Vivo website on Wednesday. It shows that the tender is being arranged by Credit Suisse…
Spanish telco Telefonica has made a public tender offer to buy the outstanding common stock in Brazilian telco Vivo.
A notice of the tender offer was published on the Vivo website on Wednesday. It shows that the tender is being arranged by Credit Suisse on behalf of SP Telecomunicacoes Participacoes, a company indirectly controlled by Telefonica.
The offer was for over 15m shares, which represents the whole outstanding common stock of Vivo. The offer price is E50.10 per share in the national currency. For the whole number of shares, this would represent a cost of over US$1bn.
Vivo’s minority shareholders have thirty days from the date of the announcement to accept the offer. This runs out on 18 March.
In July 2010, Telefonica reached an agreement with its JV partner Portugal Telecom to buy its 50% stake in Brasilcel, the holding company that owns a majority stake in Vivo, for E7.5bn.
