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.
Write to Joshua Kirby at email@example.com; @joshualeokirby
(END) Dow Jones Newswires