Telefonica’s Brazilian business has raised 16.11 billion reais (€4.7 billion) through a capital increase, a move that will help it fund the purchase of broadband provider GVT.
Telefonica Brasil made the announcement to Sao Paulo stock exchange BM&F Bovespa on Wednesday.
The Spanish-owned firm agreed to buy GVT from France’s Vivendi in September for €4.66 billion in cash and a 12% stake in Telefonica Brasil.
The deal received approval from Brazil’s telco regulator Anatel in late December, and antitrust watchdog CADE gave the OK in March. That last approval was the final major hurdle to the deal, which is expected to close this summer.
As such, Telefonica was able to name current GVT chief executive Amos Genish as CEO of the merged entity.
The integration of Telefonica with GVT will create a stronger player in Brazil’s highly competitive telecoms market, adding fixed broadband capabilities to Telefonica’s mobile presence. Telefonica’s Vivo is Brazil’s largest mobile operator with more than 78 million customers and a 28.6% market share at the end of February, according to the latest fi gures from regulator Anatel.
Telefonica last month completed a €3.05 billion capital increase, with a view to using the proceeds to participate in its Brazilian unit’s own capital raising.
