Telefonica Considers IPO of its O2 Unit
September 05 2016 - 4:16AM
Dow Jones News
By Jeannette Neumann and Ana García Ruiz
MADRID--Telefonica SA (TEF) is considering an initial public
offering of its British mobile operator O2 as the Spanish
telecommunications giant seeks to raise funds to whittle down its
debt.
Telefonica has already laid the groundwork for a potential IPO
of O2 and is considering other options, the company said Monday.
Telefonica would remain the main shareholder in all of the options
the Madrid-based company is considering.
The European Commission had blocked the company's sale of O2 to
CK Hutchison Holdings Ltd. (0001.HK) because the European Union's
executive branch said the deal would have resulted in higher prices
and fewer choices for U.K. customers. Telefonica executives have
been weighing their options for O2 since the sale was blocked in
May.
Telefonica 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.
Telefonica has more than 50 billion euros ($55.78 billion) in
debt, which has been a source of concern for credit-rating firms
and investors.
Telefonica shares were up 1% in Monday morning trading in
Madrid, valuing the company at EUR46 billion.
-Write to Jeannette Neumann at jeannette.neumann@wsj.com
(END) Dow Jones Newswires
September 05, 2016 04:01 ET (08:01 GMT)
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