Vivendi, Telefonica seal US$9.3b broadband deal

Paris

FRENCH media group Vivendi has closed the deal to sell its Brazilian broadband business GVT to Spain's Telefonica for cash and shares worth around US$9.29 billion, the companies announced on Friday.

Telefonica plans to fold GVT into its Vivo-branded Brazilian mobile phone business to create the country's biggest telecom group, Telefonica Brasil.

Under the deal Vivendi will get not only a 7.4 per cent stake in Telefonica Brasil and 4.66 billion euros (S$7.59 billion) in cash but has also opted to take off Telefonica's hands its remaining stake in Telecom Italia - 8.3 per cent of Telecom Italia's voting share capital, or 5.7 per cent of its total share capital. Vivendi had had the option to take the Telecom Italia stake or a further 4.6 per cent of Telefonica Brasil. Reuters