19 September 2014
French media group Vivendi said today that it has signed a final agreement with Spain’s Telefónica for the sale of Brazilian broadband firm GVT.
Telefónica will acquire
GVT for €4.66 billion in cash from Vivendi, with the
latter also acquiring Telefónica’s 5.7%
stake in Telecom Italia as well as a 7.4% stake in its new
company, Telefónica Brasil. The total deal is worth an
estimated €7.2 billion ($9.29 billion).
Today’s announcement is the final step in the
the two companies entered into exclusive talks last month.
In what proved to be a drawn out process, Vivendi also rejected
a rivalling offer from Telecom Italia last month.
Telefónica is likely to merge GVT into its Brazilian
mobile operator Vivo to better its position in the
The transaction is expected to close before the end of the
first half of 2015.