Vivendi seeks at least EUR 7 billion for GVT - report

News Broadband Brazil 8 NOV 2012
Vivendi seeks at least EUR 7 billion for GVT - report
Vivendi is seeking to raise at least EUR 7 billion from the sale of Brazilian unit GVT, Reuters reported citing unnamed sources. According to the report, at least four bidders, including Oi, America Movil, DirecTV and Telecom Italia, have expressed interest in GVT and are taking part in initial talks. Several investment funds have also shown interest in GVT.

Categories:

Fixed

Companies:

Telecom Italia,  America Movil,  DirecTV,  GVT,  Oi,  Vivendi

Countries:

Brazil

Tags:

Internet Access, M&A buyouts & divestments

Related Articles

BRAZIL 12 DEC 2012

GVT auction to be extended to Q1 2013 - report

The auction of Vivendi's Brazilian unit GVT is likely to stretch into the first quarter of 2013, a source close to the negotiations told Dow Jones. The unnamed source pointed out that talks have not yet reached an advanced stage and there is no imminent deal. The report also said that KKR, Brazilian investment firm Gavea Investimentos and Cambuhy Investments have set up a consortium to bid for GVT. Interest has also been expressed by the investment fund of Brazilian bank Banco BTG Pactual and US-based DTH o

BRAZIL 29 NOV 2012

Vivendi receives four offers over EUR 6 bln for GVT - report

Vivendi has received four non-binding offers over EUR 6 billion for Brazilian broadband operator GVT, people familiar with the matter told Reuters. The offers were submitted by Mexico's America Movil, US satellite group DirecTV, US cable group Liberty Global, and a consortium of private equity companies. The four bids are all lower than the EUR 7 billion that sources previously told the news agency Vivendi was aiming to raise from the sale. While Vivendi received more than four offers initially, it has repo

BRAZIL 19 NOV 2012

Oi rejects bid for GVT

Brazilian operator Oi has issued a statement saying it does not plan to make a bid for GVT, the Brazilian operator owned by Vivendi. This follows a report in a Brazilian paper claiming the company was considering the acquisition. Oi said that it looks at all business opportunities, but in GVT's case, the right financial conditions are not in place. According to Portuguese investment bank BPI, this will prove a relief to investors in Portugal Telecom, which has a 25 percent stake in Oi. The acquisition of GV

BRAZIL 15 NOV 2012

Telecom Italia board to meet 06 Dec over GVT bid - report

The president of Telecom Italia, Franco Bernabe, will propose during a board meeting on 06 December a global expansion strategy that includes the acquisition of GVT, the Brazilian fixed telephony operator up for sale by Vivendi. According to a report in Italian daily Corriere della Sera, Vivendi is asking EUR 9 billion for GVT, but could drop to EUR 5-6 billion, a figure that Telecom Italia's Brazilian unit Tim Brasil could afford. However, fresh funds are required for growth and that is where the EUR 3 bil

FRANCE 15 NOV 2012

Orascom's Sawiris shows interest in SFR

Egyptian telecoms magnate Naguib Sawiris is considering buying SFR from Vivendi through one of his subsidiaries, he told the Financial Times. The founder of Orascom said the operation would be too large to fund from his personal resources. The French mobile and broadband operator could be worth EUR 13-14 billion. According to someone close to SFR, it is more likely that a French partner would be found for SFR. Vivendi is currently in talks with cable group Numericable. Sawiris just announced plans to buy a

BRAZIL 14 NOV 2012

GVT reports Q3 revenues up 23%

Brazilian broadband operator GVT ended the third quarter of 2012 with net revenues of EUR 1.1 billion, an increase of 23 percent on the same period last year. EBITDA was BRL 462.9 million, up 23 percent year on year, while the EBITDA margin grew from 42.2 percent to 42.3 percent. The operator added seventeen cities to its coverage and is now present in 136 cities. The number of lines in service reached 8.178 million, a 41.7 percent increase on September 2011. More than 42 percent of the customer base had in

BRAZIL 14 NOV 2012

Telecom Italia confirms interest in Brazil's GVT

Telecom Italia has confirmed it is interested in purchasing Brazilian operator GVT from Vivendi. "GVT is a fixed-line operator and in Brazil we already have the second-biggest mobile operator there, so it is certainly something to look at, just as we are looking at many other things," CEO Marco Patuano told reporters in Rome. According to Reuters, Patuano also said that he sees no need for a capital increase at Telecom Italia. Earlier press reports suggested that the operator could use a proposed investment

GLOBAL 14 NOV 2012

Vivendi raises full-year guidance

French telecom and entertainment group Vivendi has raised its full-year adjusted net profit guidance to approximately EUR 2.7 billion, compared to its previous guidance of over EUR 2.5 billion, as a strong business performance offset the economic slowdown and heavier tax environment. Vivendi confirmed its year-end net debt outlook at below EUR 14 billion. In the first nine months, group revenues were down 1.3 percent to EUR 20.75 billion. Although EBITA declined by 11 percent to EUR 4.33 billion in the nine

BRAZIL 13 NOV 2012

Sawiris investment to help Telecom Italia buy GVT - report

Egyptian businessman Naguib Sawiris is planning to invest EUR 3-4 billion in Telecom Italia in order to help the Italian operator acquire Brazilian operator GVT, owned by Vivendi, reported Italian papers Corriere della Sera and Il Messaggero. Telecom Italia is one the companies that have expressed interest in GVT, which Vivendi hopes to sell for a minimum EUR 7 billion, but the Italian operator also needs to reduce its debt in the face of a slowing home market. In a separate report, French daily Le Figaro s

BRAZIL 14 OCT 2012

GVT planning to introduce fixed-mobile convergence

Brazilian fixed telephony operator GVT is planning to introduce fixed-mobile convergence, reports local portal Teletime. According to the director of marketing and products, Ricardo Sanfelice, this new strategy consists of two components. The first is a smartphone app from Vono, the VoiP service of GVT, to allow Vono customers to use their lines on smartphones connected to the internet (Wi-Fi or 3G). The other new feature is that from the first half of 2013, GVT plans to transfer GVT subscribers' fixed line

BRAZIL 14 OCT 2012

GVT to set up public Wi-Fi network in Brazil

Brazilian telecommunications operator GVT is planning to use the existing base of home gateways (currently 350,000, due to expand to 500,000 by end-2012) to create a free public Wi-Fi network. The home gateways are installed in homes of pay-TV subscribers and permit the creation of two or three parallel Wi-Fi networks. GVT's plan calls for the activation of other networks, under the condition that the owners of the gateways provide the necessary authorisation. This can be done remotely by the operator and d

BRAZIL 14 OCT 2012

GVT to expand fibre optic network from 2014

Brazilian telecommunications operator GVT plans to expand its fibre optic network from 2014, according to marketing and product director, Ricardo Sanfelice. Speaking to local portal Teletime, he said that currently only one percent of GVT's broadband customers are served directly via fibre, with the remainder served by VDSL with fibre up to 400 meters from the customer's home. He added that from 2013, the fibre network will significantly approach the homes of customers and in the period 2014-2015 there wil

BRAZIL 19 SEP 2012

DirecTV may bid for GVT – report

US satellite TV provider DirecTV could submit a bid for Brazilian broadband operator GVT. Citing two unnamed sources, Bloomberg said that DirecTV is only one of the possible bidders, as GVT owner Vivendi is preparing a list of potential buyers who will be given access to financial information. GVT ended June 2012 with 300,000 pay-TV subscribers and targets adding another 100,000 by the end of the year. DirecTV is already active in Latin America and sees the region as a new growth market.

BRAZIL 31 AUG 2012

GVT sees revenue growth slowing

Brazilian broadband operator GVT reported first-half 2012 revenues of BRL 2.05 billion, up 31.4 percent from a year earlier. EBITDA rose 21.4 percent to EUR 346 million, while the EBITDA margin fell to 40.6 percent from 41.8 percent. Revenues from broadband internet services were 22.4 percent higher, while voice revenues grew 32.4 percent. The total number of lines in service reached 7.4 million, up 41.1 percent year-on-year. Broadband connections with speeds of 15 Mbps or higher represented 41 percent of s

BRAZIL 17 AUG 2012

Vivendi taps Rothschild, Deutsche Bank for GVT sale – report

Vivendi has hired Rothschild and Deutsche Bank to study strategic options for its Brazilian operator GVT, Bloomberg reports, citing two people familiar with the matter. According to the same source, Vivendi may sell the company, or a stake, or propose an initial public offering.

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.