Telefonica Brasil’s shareholders approve GVT deal

Telefonica Brasil's shareholders have approved its acquisition of broadband provider GVT in a deal worth approximately $9 billion.

The approval comes after Telefonica and Vivendi signed an agreement for the sale of GVT in September 2014. The deal is a part of a push from the operator to continue its expansion in Latin America, which accounts for half of its revenues.

As part of the agreement, Vivendi will acquire 1,100 million ordinary shares by Telefonica in Telecom Italia, representing 8.3% of Telecom Italia’s voting share capital, in exchange of 4.5% of Vivendi’s capital in the company.

To help fund the acquisition, Telefonica Brasil announced in April 2015 that it will sell 113 million common shares at $13.19 each (38.47 reais) and 220 preferred shares for $16.11 (47 reais).

Shareholders have also appointed Amos Genish, co-founder of GVT, as president of the company and a member of its board of directors.