Spanish incumbent Telefonica has revealed that it will merge the shares of Brazil’s largest mobile operator, Vivo, into its fixed line subsidiary, Telesp.
In a statement yesterday, Telefonica said that Vivo’s minority shareholders would receive 1.55…
Spanish incumbent Telefonica has revealed that it will merge the shares of Brazil’s largest mobile operator, Vivo, into its fixed line subsidiary, Telesp.
In a statement yesterday, Telefonica said that Vivo’s minority shareholders would receive 1.55 shares in Telesp for each Vivo share that they hold.
The merger is still subject to the approval of the General Shareholders Meeting at both companies.
If it is approved, Telefonica will hold a 91.8% direct and indirect stake in Telesp’s ordinary shares with voting rights and 64.6% of Telesp’s preferred shares.
This will mean that Telefonica’s total share capital in Telesp will be 73.8%.
Vivo is being advised by Lazard on the transaction, while Telesp is being advised by Bank of Santander.
