News
Spanish incumbent to float at least 25% of infrastructure arm before the end of the year.
Telefonica on Monday revealed plans to list its infrastructure unit Telxius before the end of 2016.
Launched in February, Telxius manages and monetises the Spanish incumbent’s global infrastructure. The subsidiary oversees 16,000 cell sites and more than 31,000 kilometres of fibre optic cable.
"Telefonica has established Telxius as a standalone company with the objective of more effectively capturing the value from operators’ use of the infrastructure to satisfy the significant telecommunication data traffic growth expects over the next years," said Telefonica, in a statement on Monday.
Telefonica said it intends to float at least 25% of Telxius, and will apply to list its shares in Barcelona, Bilbao, Madrid and Valencia. The listing is expected to take place during the second half of this year.
Telxius’ pro forma revenue for the year ended 2015 was €691 million and its operating income before depreciation and amortisation (OIBDA) was €323 million.
"Telxius has a balanced business, with high quality assets exposed to developed markets and emerging economies, both with strong growth in data demand," said Telefonica.
O2 UK IPO
In a separate filing with Spain’s stock market regulator, the Comisión Nacional del Mercado de Valores (CNMV), Telefonica confirmed it has begun a strategic review of O2 UK, including preparatory work regarding an initial public offering.
An IPO has been on the cards since Telefonica’s bid to sell O2 to local rival 3UK was blocked by the European Commission earlier this year. A float would raise funds that would help Telefonica pay off some its hefty debt.
In its CNMV filing, Telefonica insisted it plans to retain a majority stake in O2 regardless of the outcome of its strategic review.
