Canadian pension fund CDPQ to invest up to $317 mln in Brazil fiber network with Telefonica (updated)

Telefonica Brasil, SA

02/03/2021 22:07

(Add deal details, context)
    BRASILIA, March 2 (Reuters) - The Brazilian unit of Spanish
telecom Telefonica SA  TEF.MC  said on Tuesday that it had
agreed with Canadian pension fund CDPQ to create a joint venture
to develop a "neutral and independent" wholesale fiber optic
network in Brazil.
    According to a securities filing, Caisse de dépôt et
placement du Québec (CDPQ) will invest up to 1.8 billion reais
($317 million) in the venture, receiving a 50% voting share.
Telefonica Brasil  VIVT4.SA  will have a 25% voting stake, while
Telefonica Infra, another subsidiary of the Spanish company,
will have the remaining 25% share.
    The new venture, called FiBrasil Infraestrutura e Fibra
Ótica S.A., aims to reach 5.5 million households within 4 years.
    Telefonica will be an "anchor customer" for FiBrasil and
contribute some 1.6 million homes already in service.
    Telefonica Chief Operating Officer Angel Vila said last week
that the company was in talks with an investor to expand high
speed fiber coverage to more Brazilian cities, following a
similar project in Germany with insurer Allianz  ALVG.DE . Vila
had not named the investor in the Brazil project at the time.
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($1 = 5.6761 reais)

 (Reporting by Jake Spring; Editing by Christian Plumb)
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