UPDATE 1-Telefonica Brasil says plans new share offering on April 16

jueves 26 de marzo de 2015 11:06 GYT
 

(Updates with details of deal, Spanish offering)

By Alberto Alerigi and Guillermo Parra-Bernal

SAO PAULO/NEW YORK, March 26 (Reuters) - Telefonica Brasil SA on Thursday announced plans for a share offering in three weeks to help close the acquisition of broadband provider GVT from Vivendi SA by June, confirming information provided to Reuters on Wednesday.

The Brazilian unit of Spain's Telefonica SA said in a filing it would issue more than 113 million common shares and nearly 220 million preferred shares - worth around $5 billion based on Wednesday's closing price.

Considering potential market discounts for the capital increase, the deal is likely to raise around $4 billion, one of two sources with direct knowledge of the plans told Reuters.

Telefonica Brasil said it would price the offering on April 16, as both sources had said. Telefonica, the parent company, is likely to subscribe to $2.8 billion of its subsidiary's share offering, with the rest placed with investors, according to the sources.

Shares of Telefonica Brasil slipped 1 percent on Thursday on the Sao Paulo stock exchange.

Telefonica said separately in a Spanish securities filing late on Wednesday that it would raise 3 billion euros ($3.3 billion) in a rights issue to help fund the acquisition, shoring up the fixed-line services of its unit in Brazil, where a once-booming mobile market cooled dramatically in recent years.

($1 = 0.9120 euros) (Additional reporting by Brad Haynes; Editing by Chizu Nomiyama and Paul Simao)