Brief: Telefonica Completes Deal With CDPQ For Fiber Optic Network JV In Brazil

Telefonica Brasil, SA

05/07/2021 06:33

July 5 (Reuters) - Telefonica SA  TEF.MC :
    * SAID ON FRIDAY, INFORMS OF COMPLETION OF TRANSACTION
REGARDING
AGREEMENT REACHED WITH CDPQ FOR THE CONSTRUCTION, DEVELOPMENT
AND OPERATION OF A FIBER (FTTH) NETWORK IN BRAZIL THROUGH THE
CREATION OF A JOINT VENTURE ENTITY, FIBRASIL INFRAESTRUTURA E
FIBRA OTICA (FIBRASIL)
    * TERMS OF THE TRANSACTION ENCOMPASS A TOTAL INVESTMENT BY
CDPQ OF
UP TO R$1.8 BILLION ($355.91 MILLION) COMPRISING PAYMENTS TO
TELEFONICA BRASIL  VIVT3.SA  AND CONTRIBUTIONS TO FIBRASIL, FOR
A 50% STAKE IN FIBRASIL
    * TELEFONICA INFRA, WILL MAKE CERTAIN PAYMENTS TO TELEFONICA
BRASIL, IN EQUIVALENT ECONOMIC TERMS, FOR A 25% STAKE IN
FIBRASIL
    * THIS RENDERS AN IMPLIED VALUATION OF THE BROWNFIELD ASSETS
CONTRIBUTED BY TELEFONICA BRASIL, OF 16.5X OIBDA 2020 PRO-FORMA

    
    
 Source text for Eikon:  urn:newsml:reuters.com:*:nCNM5VQ22n  urn:newsml:reuters.com:*:nL2N2L0316
    
 Further company coverage:  TEF.MC  
   



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