L’AGEFI, Geneva – Telecom group GVT of Brazil (listed at Bovespa), has been the object of a bidding competition between Vivendi and Telefonica.
Geneva-based group Crédit des Alpes were the advisors to GVT’s majority shareholders. Their intervention allowed GVT to close the transaction, and for Vivendi to take it away from Telefonica. The transaction also gives Vivendi their first foothold in Latin America.
Vivendi acquired (in a first stage), a 37.9% share in GVT equity, together with an irrevocable option to buy a further 19.6% at a price of $32 per share. This valued GVT at $4.2 billion – a valuation considerably higher than Telefonica’s initial bid.
Vivendi, with investments in the communication and entertainment industries controls (among others) Activision Blizzard, Universal Music Group, SFR, Maroc Telecom Group, Canal+ Group. In 2008 Vivendi achieved revenues of €25.4 billion and adjusted net income of €2.7 billion. They have operations in 77 countries and have approximately 43,000 employees.
GVT is the Brazilian telecom company with the highest rate of growth, which offers a variety of solutions in traditional as well as non-traditional telecommunications, internet-related services and pay TV. In fiscal year ended June 30 2009 GVT had sales of $800 million and adjusted EBITDA of $300 million.
This article was translated from the original