Telefó nica May IPO U.K. Unit O2
September 05 2016 - 5:30AM
Dow Jones News
MADRID—Telefó nica is considering an initial public offering of
its British mobile operator O2 and a partial IPO of its Telxius
infrastructure business as the Spanish telecommunications giant
seeks to whittle down its debt.
In May the European Commission blocked the company's sale of O2
to CK Hutchison Holdings Ltd., saying it would have resulted in
higher prices and fewer choices for U.K. customers. That deal was
valued at the time at around $14 billion. Telefó nica executives
have since been looking at alternatives.
Telefó nica has already laid the groundwork for a potential IPO
of O2. It is considering other options but plans to remain the main
shareholder, the Madrid-based said Monday.
Telefó nica said in a separate regulatory filing on Monday that
it is launching an IPO of its Telxius infrastructure unit, with a
free-float of at least 25%. The IPO is likely to happen before the
end of the year, after the company receives regulatory approval for
the deal.
Telefó nica has more than €50 billion ($55.78 billion) in debt,
which has been a source of concern for credit-rating firms and
investors.
Telefó nica shares were up 1% in Monday morning trading in
Madrid, valuing the company at €46 billion.
Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
September 05, 2016 05:15 ET (09:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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