Vivendi and Telefónica seal GVT deal
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 process, after 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 country’s market.
The transaction is expected to close before the end of the first half of 2015.