Brief: Telefonica Says Acquisition Of Mobile Assets Of Brazil's Oi Group Was Concluded

Telefonica Brasil, SA

21/04/2022 06:35

April 21 (Reuters) - Telefonica SA  TEF.MC :
    * SAID ON WEDNESDAY CLOSING OF TRANSACTION RELATED TO
CONTRACT OF
PURCHASE AND SALE OF SHARES AND OTHER COVENANTS, CONCLUDED ON
JAN. 28, 2021, BETWEEN TELEFONICA BRASIL, TIM, AND CLARO AS
BUYERS, AND OI AS SELLER, WAS CARRIED OUT ON WEDNESDAY
    * TELEFONICA BRASIL HAS ACQUIRED ALL SHARES OF GARLIAVA RJ
INFRAESTRUTURA E REDES DE TELECOMUNICACOES, TO WHICH MOBILE
ASSETS OF OI GROUP ASSIGNED TO TELEFONICA BRASIL WERE
CONTRIBUTED
    * TELEFONICA BRASIL HAS ACQUIRED ITS SHARE OF MOBILE ASSETS
OF OI
GROUP FOR ABOUT 5.37 BILLION BRAZILIAN REAIS (ABOUT 1.06 BILLION
EUROS AT CURRENT EXCHANGE RATE), HAVING PAID, ON WEDNESDAY,
ABOUT 4.86 BILLION BRAZILIAN REAIS (ABOUT 966 MILLION EUROS)
    * REMAINING AMOUNT, EQUIVALENT TO 10% OF PAYMENT MADE ON
THIS
DATE, IS WITHHELD SUBJECT TO CERTAIN PRICE ADJUSTMENTS AND
POTENTIAL INDEMNIFICATION OBLIGATIONS STATED IN CONTRACT
    * THOSE AMOUNTS INCLUDE NET CASH POSITION IN ACQUIRED
COMPANY OF
ABOUT 83 MILLION BRAZILIAN REAIS (ABOUT 16 MILLION EUROS)
    * LIKEWISE, TELEFONICA BRASIL HAS COMMITTED TO ADDITIONAL
PAYMENT
OF UP TO 115 MILLION BRAZILIAN REAIS (ABOUT 23 MILLION EUROS) OF
WHICH 40 MILLION BRAZILIAN REAIS (ABOUT 5 MILLION EUROS) WERE
PAID AT THIS DATE
    *  TELEFONICA BRASIL HAS MADE PAYMENT OF ABOUT 148 MILLION
BRAZILIAN REAIS (ABOUT 29 MILLION EUROS) FOR CERTAIN TRANSITION
SERVICES TO BE PROVIDED BY OI TO GARLIAVA
    * TELEFONICA BRASIL HAS SIGNED TAKE-OR-PAY DATA TRANSMISSION
CAPACITY CONTRACT, WITH NET PRESENT VALUE OF 179 MILLION
BRAZILIAN REAIS (ABOUT 35 MILLION EUROS), TO BE PAID MONTHLY
DURING PERIOD OF 10 YEARS
    * MOBILE ASSETS OF OI GROUP ASSIGNED TO TELEFONICA BRASIL
ARE
CLIENTS (ABOUT 12.5 MILLION), 43 MHZ SPECTRUM AS NATIONAL
POPULATION-WEIGHTED AVERAGE AND CONTRACTS FOR USE OF 2.7
THOUSAND SITES OF MOBILE ACCESS (CORRESPONDING TO 19% OF SITES
OF MOBILE ASSETS OF OI GROUP)

       
 Source text for Eikon:  urn:newsml:reuters.com:*:nCNM9dJg0B
 Further company coverage:  TEF.MC  

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