French media giant, Vivendi is making inroads into the European telecoms market, taking 1.11 billion ordinary shares (or 8.24%) of Telecom Italia, the leading fixed and mobile telecommunications operator in Italy, in exchange for 4.5% of the share capital of Telefonica Brasil.
Separately, the Group increased its ordinary shares in Telecom Italia from 1.90% purchased recently, with an additional stake of 4.76% purchased on June 22, to bring its total share to up to 6.66% , representing a global cash payment of approximately €1 billion. Vivendi therefore now owns 14.9% of Telecom Italia’s ordinary shares and has thus replaces Telefonica as the company’s largest shareholder.
In a statement Vivendi said it intended to support Telecom Italia in the long term and the investment represents an opportunity for the Group to be present and to expand in a market with significant growth prospects and a very strong appetite for quality content.
