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Telefonica buys GVT for EUR 7.2 bln in cash plus shares

2014-09-19 09:43:00| Telecompaper Headlines

(Telecompaper) Telefonica has confirmed its acquisition of Vivendi's Brazilian broadband operator GVT in a deal worth around EUR 7.2 billion in cash and shares. A final agreement was signed on 19 September after Vivendi had agreed to enter into exclusive negotiations with Telefonica on 28 August, snubbing a EUR 7 billion offer from Telecom Italia. The agreement, which was reached comfortably before the end of the three-month negotiation period, includes the payment of EUR 4.66 billion in cash, from which a bank debt of around EUR 450 million and adjustments in working capital must be deducted. In addition, Vivendi will receive 7.4 percent of Telefonica Brasil shares, at a stock market value of EUR 2.02 billion as of 18 September, and 5.7 percent of Telecom Italia shares at a stock market value of EUR 1.01 billion as of 18 September. Vivendi confirmed in a statement that it will also be liable for tax estimated at around EUR 500 million. It said the transaction should close before the end of the first-half of 2015, subject to regulatory approval from Anatel and Cade, Brazil's telecoms and competition authorities.

Tags: plus eur cash shares

Category:Telecommunications

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