Renta 4 | Telefónica Brasil (Telefónica (TEF) 74,2%) finalised the acquisition of Oi’s assets which corresponded to the Spanish firm for a total of 1.063 billion euros. Telefónica Brasil paid some 966 million euros on the closing date of the transaction in April 2022. The payment of the remaining 10% is subject to specific price adjustments and potential indemnisation obligations. Separately, Telefónica Brasil took on a commitment to make an extra payment of…
Upon completion of the transaction, Telefónica and Caisse de dépôt et placement du Québec will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group’s 50% participation will be held through Telefônica Brazil (“Vivo”) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%. Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo.
The consortium participated by Telefonica, along with its two rivals Mexico’s América Móvil and Italy’s TIM, has qualified as a stalking horse or first bidder in the race to buy Brazil’s Oi’s mobile business. The qualification as first bidder gives the consortium the right of first refusal if a higher competitive offer is made.
Spanish telecommunications’ giant Telefonica, together with Italy’s TIM and Mexico’s Claro, have tabled a 2.706 billion euros joint offer for the assets of Brazil’s Oi, the fourth largest telco in Brazil. This bid is 10% over the minimum auction price of 2.5 billion euros required by the company. Telefonica is market leader in Brazil with a share of 33% followed by TIM and Claro, with 24% each.
Alphavalue | Telefonica´s poor figures for Q119 traded with falls of 31%. Sales of 11.98 Bn€ › 11.81 Bn€ estimated by the consensus. Our analysts highlight that the operator improved income in all the geographic areas where it is present, especially in Spain and Brazil, its two main markets.