Vivendi has confirmed that it will hold exclusive talks with Telefonica regarding the sale of its Brazilian fixed-line unit GVT.
Telefonica had made a €7.45 billion bid for GVT – owned by Vivendi - compared to rival Telecom Italia’s €7 billion offer. The Spanish firm’s offer will generate a capital gain of €3 billion for Vivendi, which stated that Telefonica’s offer was otherwise “totally in line” with its goals.
The deal values GVT at €7.45 billion and includes €4.66 billion in cash along with 12% of shares in Vivo, Telefonica’s Brazilian unit. Vivendi has the option of trading a third of these shares for Telefonica’s 5.7% stake in Telecom Italia.
Vivendi has stated that the deal will enable “the development of joint projects in content and media”. The French group has now completely divested itself of telecoms businesses, having sold SFR and Maroc Telecom earlier this year.
Telecom Italia’s rival offer valued GVT at €7 billion and offered €1.7 billion in cash, along with a 15% holding in TIM Brasil and a 16% share in TI. Vivendi acknowledged the “the relevance and quality of the Telecom Italia offer”.
