French telecoms and media giant Vivendi has launched a €2 billion ($2.91 billion) takeover bid for Brazilian carrier GVT.
Vivendi told the market yesterday that it would issue an offer for 100% of GVT’s capital at R42 per share, representing a 15% premium over GVT’s last closing share price of R36.26 on Tuesday.
According to the French carrier, GVT’s controlling shareholders Swarth Group and Global Village Telecom have agreed to sell at least 20% of its outstanding shares.
Vivendi said that the offer would only proceed if it can get at least 51% of GVT’s capital. It plans a bid for 100% of the Brazilian firm’s capital at a 16% on its Tuesday closing price.
“This agreement with GVT meets a strategic objective for Vivendi to expand in fast growing economies ... With this significant investment and a long-term commitment in Brazil, Vivendi intends to create value for its shareholders,” Vivendi CEO Jean-Bernard Levy said in a statement.
confirmed
The company is aggressively trying to increase its geographical footprint, in particular in emerging markets. In July it ended talks to buy a majority stake in Zain.
GVT is the leading challenger telco in Brazil and had revenues of around of about €552 million last year.