Telefónica Germany currently has a market value of €5 billion
Telefónica has announced its intention to launch a bid for the 28.19% of Telefónica Deutschland shares that that it does not already own for a total of €1.9 billion.
In a statement released today, the firm said it will offer a cash price of €2.35 per share, which is a 27.6% premium on its closing share price yesterday (6th November).
Telefónica already owns the remaining 71.81% of Telefónica Deutschland.
The move is representative of Telefónica’s strategic shift, announced back in 2019, to focus more heavily on its core markets – Spain, Brazil, Germany, and the UK.
Additionally, the firm claim the move represents its “strong commitment to the German market, representing one of the most attractive and stable telecom markets in Europe.”
In recent years, Telefónica has divested of its assets in numerous markets around the world, most notably in Latin America.
In July, Telefónica announced its company-wide focus on cash regeneration after years of company restructuring. The new strategic outlook is to be presented in the company’s Capital Markets Day on 8th November.
“Telefónica is moving towards a new vision of the company with its 2023-2026 plan, a new model of operational excellence based on three pillars: Growth, Profitability and Sustainability,” said José María Álvarez-Pallete, Chairman of the company, in Telefónica’s 2023 Q2 earnings report.
Telefónica Deutschland is one of the leading providers in the country, serving more than 44 million mobile customers and 2.3 million broadband customers.
The firm said the offer, expected to begin in December and run until mid-January, is not subject to a minimum acceptance threshold.
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