Vivendi mulling disposal of GVT

1 Aug 2014

French media group Vivendi, which recently agreed to sell its domestic telecoms unit SFR to Numericable and its Luxembourg-based parent Altice Group, has reportedly reached out to sale advisers with regards to its intention to resume the desired sale of its Brazilian fixed line operator Global Village Telecom (GVT), which is valued at EUR7 billion (USD9.37 billion). Vivendi is keen to revisit the sale as soon as the SFR-Numericable deal is concluded, TMT Finance reports. According to unnamed sources familiar with the matter, the French conglomerate is expected to hire the investment banking divisions of Rothschild and Deutsche Bank to resume their roles as advisers in the deal.

As previously reported by TeleGeography’s CommsUpdate, in 2012 Vivendi revealed its objective to refocus its portfolio on its media and content businesses, and in August hired Rothschild and Deutsche Bank to review the strategic options for GVT. Despite attracting interest from the likes of domestic rival telco Oi, DIRECTV, Liberty Global and Mexico-based America Movil (AM), in mid-March Vivendi cancelled its sale plans, due to the lower than expected offers it had received. People familiar with the situation suggested that the tentative bids fell below the EUR7 billion Vivendi had targeted.

Brazil, Global Village Telecom (GVT), Vivendi