French media and telecom conglomerate Vivendi SA has completed the buyout of almost all the outstanding shares of Brazil's telecom operator GVT Holdings SA through the acquisition of 16.6 million common shares representing 93.6 per cent of the free float.
Vivendi's holding in GVT has now increased to 99.2 per cent or 136.1 million shares out of the 137.2 million shares comprising its share capital, Vivendi said in a statement.
Further to the acquisition, the remaining shareholders of GVT will be given a chance to redeem their shares at the offer price of R$56 ($32.3) a share adjusted by the interest rate.
The registration of GVT as a public company will be cancelled.
Curitiba-based GVT is a provider of fixed line, broadband/ISP, VoIP services in centre-west, southern and northern regions of Brazil, with a focus on high-usage and high-margin customers and has a customer base of over 2.6 million. The operator has one of the most modern and extensive local access networks and long distance fibre networks in the country.
For the first quarter of 2010 the telecom operator reported a net profit of R$32.4 million, up 25 per cent from R$26 million for the same period last year. Sales for the quarter surged over 36 per cent to R$513 million compared to R$376 million for Q1 2009.