The board of directors of Telefonica Brasil (Vivo) has approved plans for a capital increase to finance the takeover of Vivendi’s Global Village Telecom (GVT) unit, BNAmericas reports. Telefonica agreed a EUR7.88 billion (USD9.83 billion) deal with the French firm in September this year, and noted at the time that the EUR4.66 billion cash component of the deal would be funded via a capital increase. As such, the Brazilian telco will issue 500 million ordinary and preferred shares, taking its total capital stock from 1.35 billion shares to 1.85 billion. The remaining balance will be paid in shares in Vivo plus Telefonica-owned shares in Telecom Italia (TI). The acquisition of GVT is still subject to regulatory approvals from Brazil’s antitrust body Conselho Administrativo de Defesa Economica (Administrative Council for Economic Defense, or Cade), but Telefonica expects the deal to receive approval by 1H15.
In unrelated news, Telefonica Brasil has confirmed that it has extended fibre-optic connectivity to Joinville in Santa Catarina state, with the deployment of a modest 7.7km link in the city’s business district. To date, 2014 has seen the telco roll out fibre infrastructure in Caxias do Sul, Fortaleza, Goiania, Niteroi, Salvador and Vitoria. Meanwhile, in 2013 the company activated its fibre network in Belo Horizonte, Brasilia, Curitiba, Porto Alegre, Recife and Rio de Janeiro. The aforementioned fibre links currently serve business customers only; Telefonica’s residential-focused fibre-to-the-home (FTTH) ‘Vivo Fibra’ service remains limited to customers in Sao Paulo state.