The French media company Vivendi has agreed to sell GVT, its wholly-owned Brazilian subsidiary, to the Spanish telecoms business Telefonica.
The agreement, signed yesterday, includes a payment of €4.66 billion in cash, from which a bank debt of around €450 million and adjustments in working capital will be deducted. Vivendi will also receive 7.4 per cent of Telefonica Brasil shares, at a stock market value of €2.02 billion , and 5.7 per cent of Telecom Italia shares.
The final agreement is subject to certain conditions, including the approval by the relevant regulatory authorities, notably Anatel (Telecommunications) and Cade (Competition) in Brazil. The closing of the transaction should take place before the end of the first half of 2015.