Telefonica to Form Brazil Joint Venture for Construction, Operation of Fiber Network
By Joshua Kirby
Telefonica SA said Wednesday that its Brazilian subsidiaries
have agreed to form a joint venture for the construction and
operation of a fiber network in the country, alongside Canadian
investment fund Caisse de Depot et Placement du Quebec.
The Spanish telecommunications company said Telefonica Brasil SA
and Telefonica Infra will share a 50% stake in the joint venture,
to be named FiBrasil Infraestrutura e Fibra Otica, with CDPQ
holding the other half. The fund will invest up to 1.8 billion
Brazilian reals ($317.1 million) in the joint venture, Telefonica
said. Meanwhile, Telefonica Infra will also make payments for its
25% stake. Telefonica Brasil will contribute some 1.6 million
fiber-equipped homes and will be the anchor tenant of FiBrasil.
FiBrasil will construct, develop and operate a fiber network in
mid-sized cities outside of the state of Sao Paulo, Telefonica
said. The transaction is subject to regulatory approvals.
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(END) Dow Jones Newswires
March 03, 2021 01:23 ET (06:23 GMT)
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