CPP Investments Invests Hundreds of Millions in FTTH Network Provider V.Tal

Posted on 11/26/2022

Canada Pension Plan Investment Board (CPP Investments) announced an investment of R$2.5 billion Brazilian reais (C$ 625 million) for a 9.5% stake in V.Tal, the largest neutral fiber-to-the-home (FTTH) network provider in Brazil.

V.Tal currently accounts for about 14% of Brazil’s fiber network and reaches nearly 20 million households across the country. V.Tal intends to continue expanding its footprint in Brazil, a market with substantial unmet demand for high-speed connectivity.

A neutral FTTH network allows various internet service providers to purchase bandwidth on a single fiber network. As a result of the V.Tal’s capital increase, Oi’s interest in V.Tal’s voting and total share capital will be approximately 34.12%. V.Tal has 430,000 kilometers of terrestrial fiber deployed in Brazil, inherited from Oi. Oi, formerly known as Telemar, is the largest fixed telephone operator and the fourth mobile telephone operator in Brazil.

The transaction is subject to customary closing conditions and regulatory approvals.

CPP Investments is a significant investor in Latin America, with C$ 30 billion invested in real estate, infrastructure, public equities, private equity funds, and direct investments. These investments represent 6% of CPP Investments’ total assets at September 30, 2022.

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