Vivendi has received binding offers for its wholly owned Brazilian subsidiary GVT from Telecom Italia and Telefónica.
The former values GVT at €7 billion and includes a part in cash (€1.7 billion), a part in Telecom Italia shares (16% of share capital and 21.7% of voting rights) and a part in TIM Brasil shares (15%).
The offer expires on September 10.
Furthermore, the GVT acquisition would be submitted to Telecom Italia’s shareholders’ meeting and Telecom Italia would have an exit clause in case of a loss of significant value of GVT.
Meanwhile, the Telefónica offer, following one received on August 4, values GVT at €7.45 billion.
The cash element is €4.663 billion, with the remainder made up of Telefonica Brasil shares (12%) of which about one third can be exchanged at Vivendi’s discretion for 5.7% of the share capital and 8.3% of the voting rights in Telecom Italia.
The offer expires tomorrow (August 29).
Both offers include proposals for content partnerships.
Vivendi’s supervisory board will meet today to discuss the two offers and what action to take.
