French entertainment and telecoms group Vivendi said that it planned to launch an amicable bid for Brazilian telecom operator GVT, in a deal that would be valued at €2 billion ($2.88 billion) if completed.
Vivendi said it would launch a tender offer for 100% of GVT's capital at 42 reais per share, valuing the Brazilian broadband and telecoms player at 5.4 billion reais or €2 billion.
The price represents more than a 15% premium over GVT's closing share price of 36.26 reais on Tuesday.
Vivendi's offer would only go ahead if it could obtain at least 51% of GVT's capital. The tender offer is subject to getting Vivendi board approval and undertaking due diligence before October 16.
The controlling shareholders of GVT, Swarth Group and Global Village Telecom (Holland) BV. have agreed to sell at least 20% of GVT's outstanding shares to Vivendi, according to the French company.
The main GVT shareholders have also agreed to vote in favor of changing GVT's bylaws to get rid of an anti-takeover provision, according to Vivendi.
Swarth Group and Global Village Telecom could not immediately be reached for comment. A GVT spokeswoman declined to comment on the offer.
The offer is Vivendi's latest major move into emerging markets. In July it ended talks to buy a majority stake in the African telecoms unit of Kuwati telecoms company Zain.
GVT is the leading alternative telecom provider in Brazil and had revenues of about $800 million and $300 million of adjusted operating profit last year. (Reuters)