French media and telecoms giant Vivendi has announced it is launching a bid to buy Brazilian telecoms operator GVT.
Paris-based Vivendi is launching a tender offer for 100 per cent of GVTÔÇÖs capital at R$42 per share, which values the Brazilian company at R$5.4 billion, or Ôé¼2 billion.
The move comes as Vivendi seeks to strengthen its presence in emerging markets. It already holds a majority stake in MoroccoÔÇÖs Maroc Telecom, and in July it held talks with Kuwaiti telecoms company Zain about the possibility of purchasing its African unit.
GVT is BrazilÔÇÖs leading alternative telecoms provider, supplying broadband, VOIP telephone, pay TV and internet services to around 2.3 million lines across the country. Last year it had revenues of approximately R$1.4 billion (Ôé¼550 million).
The deal will need agreement from GVTÔÇÖs board and shareholders by October 16 in order to proceed.
VivendiÔÇÖs offer is conditional on acquiring at least 51 per cent of GVTÔÇÖs share capital. The controlling shareholders of GVT, Swarth Group and Global Village Telecom, have agreed to sell at least 20 per cent of the companyÔÇÖs outstanding shares to Vivendi, out of the 30 per cent they currently own.
Commenting on the agreement, CEO of Vivendi Jean-Bernard L├®vy stated: ÔÇ£This agreement with GVT meets a strategic objective for Vivendi to expand in fast growing economies. GVT has developed innovative and original solutions in broadband communications services and already delivered very exciting results.
 
ÔÇ£With this significant investment and a long-term commitment in Brazil, Vivendi intends to create value for its shareholders.ÔÇØ
 
Amos Genish, GVTÔÇÖs CEO, added: ÔÇ£The companyÔÇÖs management is excited to have Vivendi as a shareholder in GVT. VivendiÔÇöa leading and global player in the communication and entertainment content marketsÔÇöwill bring know-how and synergies to our current and future activities, which will solidify our market position as the fastest growing telecommunications operator in the Brazilian market and will open new business opportunities for usÔÇØ.
 
*        *        *
