What happened? *Telefonica Brasil announced overnight that they would acquire the 50% stake in FiBrasil, currently owned by La Caisse, for BRL 850m (EUR 131m) *If approved TEF would fully control FiBrasil (75% through TEF Brasil and 25% through Telefonica Infra). No other financial details have been reported *FiBrasil currently operates in the neutral and independent wholesale fiber optic network sector in the Brazilian market and, by the end of 2024, was present in 151 cities, with 4.6 million homes passed. BNPP Exane View: *Whilst not a particularly large transaction in its own right, we believe that this deal could be a precursor for other FTTH JV acquisitions across Telefonica''s footprint (the company also has FTTH JVs in Spain, Germany and other LatAm markets *We expect this to be one of the areas discussed as part of Telefonica''s strategic review, due to complete by year end *Whilst difficult to assess the merits of the transaction given limited financial information available to assess valuation multiples, generally we see ''full ownership'' of infrastructure assets as a positive for operators in the industry