First Read: Telefonica Brasil SA "FiBrasil Acquisition Completed at Stable..."

Research evidence excerpt

First Read: Telefonica Brasil SA "FiBrasil Acquisition Completed at Stable..."

Global Research

18 May 2026ab

First Read

Telefonica Brasil SA Equities

FiBrasil Acquisition Completed at Stable Brazil

Valuation, Marginally Enhancing Earnings Wireless Communications

12-month rating Sell

Quality and Dividend Capacity

12m price target R$33.00

TEF-BZ announced the acquisition of the remaining 24.99% stake in FiBrasil from Price (18 May 2026) R$35.29

Telefónica Infra for R$458.7 million, bringing its ownership to 100% and allowing for

RIC: VIVT3.SA BBG: VIVT3 BZ

full consolidation of the fiber infrastructure subsidiary. This transaction represents

the final step in a multi-year reshaping of the asset’s ownership structure, which Trading data and key metrics

began with the creation of the JV alongside CDPQ in 2021, followed by the buyback 52-wk range R$43.18-27.51

of the fund’s 50% stake in 2025. As shown in the table, these sequential transactions Market cap. R$113b/US$22.6b

reflect a significant reset in valuation, with FiBrasil’s implied equity value declining Shares o/s 3,196m (PREF)

materially from its initial levels and subsequently stabilizing around the R$1.8bn Free float 63%

range, providing important context for assessing capital allocation decisions and Avg. daily volume ('000) 4,897

strategic direction.

Avg. daily value (m) R$197.3

Common s/h equity (12/26E) R$68.6b

UBS’s take: In our view, the transaction was executed at a valuation consistent P/BV (12/26E) 1.6x

with the prior 2025 deal, reinforcing the notion that FiBrasil’s fair value has Net debt to EBITDA (12/26E) NM

stabilized after a period of material de-rating. Strategically, bringing the

EPS (UBS, diluted) (BRL)

remaining stake in-house eliminates minority interest leakage, removing a

UBS Cons.