Telefónica’s $325.6 Million Joint Venture with Caisse de Dépôt et Placement du Québec (CDPQ)

Lefosse and Pinheiro Neto advised Telefónica on the deal.
Machado Meyer advised the Caisse de Dépôt et Placement du Québec (CDPQ).

Telefónica Group, one of the largest telecommunications service operators globally, and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have reached an agreement for the construction, development and operation of a neutral and independent optical fibre wholesale network in Brazil with the creation of FiBrasil Infraestrutura e Fibra Ótica SA (“FiBrasil”).

Upon completion of the transaction, Telefónica Group and CDPQ will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group’s 50% participation will be held through Telefônica Brazil (“Vivo”) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%.

Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo, and to offer fibre-to-the-home (“FTTH”) wholesale access to all telecommunications service providers, enabling them to offer these services to their end customers. Starting with a portfolio of 1.6 million Homes Passed (“HPs”) contributed by Telefônica Brasil, FiBrasil aims to expand its network to reach around 5.5 million HPs within 4 years, accelerating the transition to fibre and contributing to the country’s technological deployment.

CDPQ is investing a total of up to R$1.8 billion (CA$408 million) in this joint venture, comprising both primary and secondary payments. CDPQ’s projected capital contributions and the expected leverage to be raised by FiBrasil provide a fully funded business plan to accomplish the company’s deployment targets. FiBrasil is set to become a leading operator in the Brazilian fibre space, with the backing of a strong set of shareholders.

As one of the world’s largest global institutional investors in infrastructure with net assets of CA$30 billion (R$ 136 billion) in this sector, CDPQ contributes its strong investment capacity and longstanding expertise in managing infrastructure investments. Telefónica, one of the largest telecommunications service operators globally, provides strong pillars supporting the company’s growth plans and brings its technical capabilities and track record in deploying and operating fibre networks. In addition, FiBrasil will benefit from Vivo’s commercialization capabilities over its various on and offline channels as its anchor client.

Lefosse advised Telefónica Infra, S.L.U. (TEF Infra) and  Telefônica Brasil S.A. (Vivo) with a team including Mirella Mie Abe (Picture), Maurício Negri Paschoal, Ricardo Bolan, José Carlos (Zeca) Berardo, Rodrigo Cunha, Pedro Simões, Douglas Fukuhara, Sarah Cellim and Dante Zanotti.

Pinheiro Neto advised Telefônica Brasil S.A. (Vivo) with  Giancarlo Chamma Matarazzo and Tatiana Fernandes Bomfim. impuestos

Machado Meyer advised Caisse de Dépôt et Placement du Québec (CDPQ)  with Bruna Marrara, Mauro Bardawill Penteado, Rafael Arsie Contin, Antonio Paulo Kubli Vieira, Joao Demetrio Calfat Neto and Larissa Santiago Gebrim.

Involved fees earner: Mirella Mie Abe – Lefosse; Jose Carlos Berardo – Lefosse; Ricardo Bolan – Lefosse; Sarah Cellim – Lefosse; Rodrigo Cunha – Lefosse; Douglas Fukuhara – Lefosse; Mauricio Negri Machado Paschoal – Lefosse; Pedro Simões – Lefosse; Dante Zanotti – Lefosse; Mauro Bardawil Penteado – Machado Meyer Advogados; Joao Demetrio Calfat Neto – Machado Meyer Advogados; Rafael Arsie Contin – Machado Meyer Advogados; Antonio Paulo Kubli Vieira – Machado Meyer Advogados; Bruna Marrara – Machado Meyer Advogados; Larissa Santiago Gebrim – Machado Meyer Advogados; Giancarlo Chamma Matarazzo – Pinheiro Neto; Tatiana Fernandes Bomfim – Pinheiro Neto;

Law Firms: Lefosse; Machado Meyer Advogados; Pinheiro Neto;

Clients: Caisse de dépôt et placement du Québec (CDPQ); Telefonica; Telefônica Brasil S.A.;

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Telefónica’s $325.6 Million Joint Venture with Caisse de Dépôt et Placement du Québec (CDPQ)

Lefosse and Pinheiro Neto advised Telefónica on the deal.
Machado Meyer advised the Caisse de Dépôt et Placement du Québec (CDPQ).

Telefónica Group, one of the largest telecommunications service operators globally, and Caisse de dépôt et placement du Québec (CDPQ), a global investment group, have reached an agreement for the construction, development and operation of a neutral and independent optical fibre wholesale network in Brazil with the creation of FiBrasil Infraestrutura e Fibra Ótica SA (“FiBrasil”).

Upon completion of the transaction, Telefónica Group and CDPQ will each hold 50% in FiBrasil under a co-control governance model. Telefónica Group’s 50% participation will be held through Telefônica Brazil (“Vivo”) and Telefónica Infra, the infrastructure arm of Telefónica Group, each holding a stake of 25%.

Operating as a neutral wholesale company, FiBrasil is set to deploy and operate fibre-optic networks in selected mid-sized cities across Brazil outside the state of Sao Paulo, and to offer fibre-to-the-home (“FTTH”) wholesale access to all telecommunications service providers, enabling them to offer these services to their end customers. Starting with a portfolio of 1.6 million Homes Passed (“HPs”) contributed by Telefônica Brasil, FiBrasil aims to expand its network to reach around 5.5 million HPs within 4 years, accelerating the transition to fibre and contributing to the country’s technological deployment.

CDPQ is investing a total of up to R$1.8 billion (CA$408 million) in this joint venture, comprising both primary and secondary payments. CDPQ’s projected capital contributions and the expected leverage to be raised by FiBrasil provide a fully funded business plan to accomplish the company’s deployment targets. FiBrasil is set to become a leading operator in the Brazilian fibre space, with the backing of a strong set of shareholders.

As one of the world’s largest global institutional investors in infrastructure with net assets of CA$30 billion (R$ 136 billion) in this sector, CDPQ contributes its strong investment capacity and longstanding expertise in managing infrastructure investments. Telefónica, one of the largest telecommunications service operators globally, provides strong pillars supporting the company’s growth plans and brings its technical capabilities and track record in deploying and operating fibre networks. In addition, FiBrasil will benefit from Vivo’s commercialization capabilities over its various on and offline channels as its anchor client.

Lefosse advised Telefónica Infra, S.L.U. (TEF Infra) and  Telefônica Brasil S.A. (Vivo) with a team including Mirella Mie Abe (Picture), Maurício Negri Paschoal, Ricardo Bolan, José Carlos (Zeca) Berardo, Rodrigo Cunha, Pedro Simões, Douglas Fukuhara, Sarah Cellim and Dante Zanotti.

Pinheiro Neto advised Telefônica Brasil S.A. (Vivo) with  Giancarlo Chamma Matarazzo and Tatiana Fernandes Bomfim. impuestos

Machado Meyer advised Caisse de Dépôt et Placement du Québec (CDPQ)  with Bruna Marrara, Mauro Bardawill Penteado, Rafael Arsie Contin, Antonio Paulo Kubli Vieira, Joao Demetrio Calfat Neto and Larissa Santiago Gebrim.

Involved fees earner: Mirella Mie Abe – Lefosse; Jose Carlos Berardo – Lefosse; Ricardo Bolan – Lefosse; Sarah Cellim – Lefosse; Rodrigo Cunha – Lefosse; Douglas Fukuhara – Lefosse; Mauricio Negri Machado Paschoal – Lefosse; Pedro Simões – Lefosse; Dante Zanotti – Lefosse; Mauro Bardawil Penteado – Machado Meyer Advogados; Joao Demetrio Calfat Neto – Machado Meyer Advogados; Rafael Arsie Contin – Machado Meyer Advogados; Antonio Paulo Kubli Vieira – Machado Meyer Advogados; Bruna Marrara – Machado Meyer Advogados; Larissa Santiago Gebrim – Machado Meyer Advogados; Giancarlo Chamma Matarazzo – Pinheiro Neto; Tatiana Fernandes Bomfim – Pinheiro Neto;

Law Firms: Lefosse; Machado Meyer Advogados; Pinheiro Neto;

Clients: Caisse de dépôt et placement du Québec (CDPQ); Telefonica; Telefônica Brasil S.A.;

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