Vivendi exits Brazil with double deal

30 Jul 2015

French media conglomerate Vivendi has exited the Brazilian telecoms market altogether via a brace of linked transactions, it has been announced. First up, on Wednesday 29 July Vivendi swapped a 3.5% stake in Telefonica Brasil (Vivo) for a 0.95% stake in Telefonica itself, valued at EUR630 million (USD696 million). Today (30 July) Vivendi has confirmed that it has disposed of its remaining 4% stake in Vivo, for approximately USD877 million. The French firm notes that the transaction was carried out after first converting the preferred shares into American Depositary Receipts (ADRs). The buyer of the stake has not been disclosed. Announcing the transactions, Vivendi stated: ‘[The] transaction reflects the Group’s intention to become more active in Europe and to pursue strategic partnerships there’.

According to TeleGeography’s GlobalComms Database, Vivendi sold its Brazilian internet service provider (ISP) unit GVT to Telefonica for EUR7.5 billion on 28 May, and received a 12% stake in Telefonica Brasil (Vivo) as part of the deal; a 4.5% stake was subsequently swapped for Telefonica’s shares in Telecom Italia (TI), leaving the French company with a 7.5% interest in Vivo.