Global Village Telecom IPO gets under way

16 Feb 2007

Israel-based IDB Holding Corp yesterday floated its Brazilian subsidiary Global Village Telecom (GVT) on the Sao Paulo Stock Exchange. The price range for the offering was set at between BRL11 and BRL16 per share (USD5.27 and USD7.67), but had reached BRL18 by the end of the pricing stage, valuing GVT at around USD1.2 billion. Upon completion of the initial offering, IDB Development and Discount Investment will each indirectly own 10% of GVT, through GVT Holding, and a further 20% stake will be held by the Magnum Group of Europe, led by Shaul Shani, Amos Ganish, and Adi Marom. Other parties in GVT are bondholders who converted their bonds into shares.

According to TeleGeography’s GlobalComms database, GVT, the mirror licence holder in Region II, was founded six years ago and provides broadband ADSL under the Turbonet banner. In March 2003 it signed an agreement with VoIP services provider IXTC, enabling it to access the operator’s global IP network, and in September 2004 it introduced its own VoIP offering. GVT is currently owned by the Magnum Group of Europe (66.6%) and Israel’s IDB Group (33.3%).

Brazil, Global Village Telecom (GVT)