Vivendi CEO Jean-Bernard Lévy said in the company’s H209 results that the company was acting cautiously on the acquisitions front. The company abandoned plans to acquire North African telco Zain in favour of concentrating on organic growth, not least because Vivendi has a €8.5 billion ($12.3 billion) debt pile built up through debt-fueled acquisitions and JV stakes. But as Lévy puts it in the release: “This agreement with GVT meets a strategic objective for Vivendi to expand in fast growing economies.” It’s one of Lévy’s long-standing aims to grow in the fabled BRIC developing nations and Vivendi has spotted an opportunity to help GVT into new sectors like IPTV.

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It’s not signed and sealed yet though: both sides must complete due diligence proceedings before October 16 and Vivendi has to win a vote of GVT shareholders and its board. Vivendi calls itself a “strategic shareholder” in the deal but it is bidding for 100 percent of shares. However it must first secure at least a controlling 51 percent stake, at which point GVT shareholders have agreed to hand over 20 percent of their shares from the 30 percent they currently own. GVT has an anti-takeover mechanism in its by-laws but it’s agreed it will be over-ridden.

GVP operates fixed line phone, broadband, VoIP and pay TV services in both retail and corporate markets. From 2006 to 2008 its revenues grew 30.1 percent, while EBITDA grew 40.2 percent; in the 12 months to June 30 it made EBITDA of 574.1 million Real (€216 million; $312 million), on revenues of 1.49 billion Real (€560 million; $810 million). The company has 2.3 million broadband and voice connections and offers retail speeds of up to 100Mbps. GVT’s CEO Amos Genish and chairman Shaul Shani will continue in their roles.