Spain’s Telefónica to fully acquire Telefónica Deutschland

Source: Telefónica

Spanish operator Telefónica has announced it is to fully acquire Telefónica Deutschland in a cash offer of EUR 2.35 per share.

Telefónica currently holds approximately 71.81% of the shares in Telefónica Deutschland. As part of the buy, it acquires up to 28.19% of Telefónica Deutschland shares, which it does already not hold. The company also holds instruments that give the right to acquire approximately 1.32% of shares in Telefónica Deutschland.

According to the company, the move supports its efforts to simplify the group’s structure and reinforces its strategy to focus on its core markets which include Spain, Brazil, the UK and Germany.

Reuters reported the German outfit has a market value of an estimated $5bn. Telefónica said it intends to promote a revision of the current Telefónica Deutschland dividend policy beyond the already-confirmed EUR 0.18 dividend per share for financial year 2023 and expected to be paid in 2024.

The offer period is expected to commence in December 2023 and run until mid-January 2024.

The company noted the offer will be made in accordance with the terms and conditions by the German Federal Financial Supervisory Authory, which is to approve the sale.

In a press release Telefónica revealed, “Telefónica Deutschland’s future dividend policy will be reflective of the needs resulting from the implementation of its current business plan, and accordingly be subject among other things to Telefónica Deutschland’s future spending and investment plans, as well as to other existing or potential risks and contingencies. The Bidder and Telefónica intend to evaluate Telefónica Deutschland’s dividend policy over time jointly with Telefónica Deutschland’s management team. Consequently, Telefónica believes the Offer provides an attractive opportunity to access liquidity at a significant premium for all shareholders, in particular for those focused on the current dividend policy.”