French media and telecoms major Vivendi said that it is launching an amicable tender offer of about €2 billion for Brazilian telecoms operator GVT, in a move to expand in emerging markets.
Vivendi said it had signed an agreement with GVT’s controlling shareholders for the takeover and would launch an offer for 100% of GVT at BRL42 per share. Its offer would be conditional on acquiring a minimum of 51% of GVT’s fully diluted share capital.
Vivendi said GVT’s controlling shareholders Swarth Group and Global Village Telecom have agreed to sell it at least 20% of outstanding shares out of 30% they currently own. They also agreed to vote in favour of the waiver of the anti-takeover mechanism provided for in GVT’s by-laws, in favour of its offer.
Jean-Bernard Levy, CEO of Vivendi, stated: “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.
“Vivendi will support GVT in its continued profitable growth. With this significant investment and a long-term commitment in Brazil, Vivendi intends to create value for its shareholders.”
Amos Genish, CEO of GVT, said: “The company’s management is excited to have Vivendi as a shareholder in GVT. Vivendi – a leading and global player in the communication and entertainment content markets – will 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 us.”
