Telefonica Agrees on Sale of Up to 40% of Telxius to KKR for $1.35 Billion
February 21 2017 - 4:18AM
Dow Jones News
By Ian Walker
Telefonica S.A. (TEF) said it is selling 40% of infrastructure
unit Telxius Telecom S.A.U. to private-equity firm Kohlberg Kravis
Roberts & Co. for 1.28 billion euros ($1.35 billion), the
latest move by the Spanish telecom operator to reduce its
multibillion-euro debt burden.
The deal values the business at EUR3.2 billion, equivalent to
EUR12.75 a share. The price is at the bottom end of the EUR3
billion to EUR3.7 billion indicated range set by the company on
Feb. 10 when the Spanish company announced that it had received
several offers to buy a stake in the telecommunications-tower
business.
The sale of a stake in Telxius is part of the divestment plan
that the multinational has designed to reduce its high debt.
Initially, Telefonica considering floating the business on the
stock exchange, but canceled the plan when the likely valuation
proved too far below its expectations.
Telefonica said Tuesday the sale will have no impact on the
group earnings as it consists on the sale of a minority stake.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
February 21, 2017 04:03 ET (09:03 GMT)
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