News
Spanish telco to reclassify U.K. ops when it reports 1H numbers next month, suggesting no imminent IPO.
Telefonica is changing the way it reports figures for O2 UK, it announced on Wednesday, suggesting that it might hang on the business, for now at least.
The Spanish incumbent has been reporting its U.K. operations as discontinued and ‘held for sale’, but will fully consolidate them within the group starting with its half-year results, due for publication in late July, it revealed in a filing to the Spanish Stock Exchange Commission (CNMV).
Since the European Commission blocked the acquisition of O2 UK by CK Hutchison in May, there has been much speculation about the future of the business, particularly in light of the fact that Telefonica is keen to reduce its debt burden.
There has been talk of a management buyout or sale to private equity, and last week press reports claimed that Telefonica was working on plans for a U.K. IPO, including starting talks with banks.
But it now seems there will be no imminent flotation, perhaps in no small part due to the U.K.’s recent decision to exit the European Union, which has caused turmoil in financial markets.
"Telefonica continues to explore different strategic alternatives for O2 UK, to be implemented when market conditions are deemed appropriate," the telco said, in the filing.
