Telefonica Brasil said that it intends to make a public offering following its acquisition of broadband service provider GVT, which will be used to part-finance the acquisition.
The company made a statement following local media reports, saying it had previously outlined this as a potential strategy in September 2014. It said that it “intends to make the filing of such offer after obtaining all regulatory approvals for the acquisition of GVT, as well as the corporate approvals for the offer”.
No timeframe was given, either for the closing of the GVT deal or the subsequent offer.
It was separately reported that Telefonica is in talks with various banks to raise funds to support the GVT transaction.
Late last week, Telefonica said that in compliance with decisions made by the Brazilian telecoms regulator (Anatel), it has waived its political rights resulting from its shareholding in Telecom Italia, a company with which it is a rival in Brazil.
Telefonica announced its planned €7.2 billion acquisition of GVT from current owner Vivendi in September 2014, stating at that time that regulatory approval was expected before June 2015.
The plan is to merge GVT with Telefonica’s Vivo, to create an enlarged fixed/mobile player.
The Spain-based group also intends to dispose of its holding in Telecom Italia in line with the transaction.