PARIS: French media group Vivendi completed its exit from the telecoms sector Friday by announcing it had sold its Brazilian operator GVT to Spain's Telefonica for 4.66 billion euros ($6.0 billion) in cash.
Despite a lower headline amount in cash, when other assets are included, the deal signed Thursday is similar to the 6.7-billion-euro unsolicited bid that Telefonica made last month for the low-cost Brazilian operator.
From the 4.66 billion euros in cash Vivendi will have to repay bank debt and make capital adjustments, and it will also be liable for taxes estimated at 500 million euros, it said in a statement.
However the French group will get a 7.4 percent stake in Telefonica Brasil worth 2.0 billion euros at Thursday's market prices and a 5.7 percent stake in Telecom Italia worth 1.0 billion euros.
Vivendi bought GVT in 2009 for 2.8 billion euros. Since then the Brazilian company, regarded as a low-price operator, has grown rapidly to become a top player in high-speed broadband Interent, fixed-line telephone and pay-TV services.
However Vivendi, which had owned a handful of telecoms assets including French mobile operator SFR, has since switched direction to focus on its media activities and GVT was the company's last remaining asset in the telecom sector.
Subject to certain conditions, including approval by regulatory agencies in Brazil, Vivendi said it expected the transaction should close before July 2015.
After selling off numerous units, Vivendi now holds Universal Music Group and the Canal+, the leading French pay-TV company. (AFP)
