Telefónica announced this Tuesday a takeover bid to acquire the 28.19% that it does not control in its German subsidiary, Telefónica Deutschland. The operation involves an investment of up to 1,970 million euros, as reported in a relevant fact to the CNMV, to control 100% of the share capital and voting rights.
The purchase comes a few hours after it presents its new multi-year strategy and in the midst of the commotion over the entry of the Saudi STC into its shareholding, which has caused SEPI, with state capital, to study the purchase of a stake. to safeguard its strategic role and the Spanish core.
The telecommunications giant is offering 2.35 euros per share in cash, which represents a premium of approximately 37.6% over Telefónica Deutschland's closing price this Monday (1.70 euros) and 36% above the weighted price of the last quarter.
The operation seeks to increase Telefónica Deutschland's contribution to the group's consolidated profit and cash flows in euros. In addition, it aims to reinforce the strategy of focusing on its main geographic markets and its “firm commitment” to the German market, “one of the most attractive and stable telecommunications markets in Europe.” The subsidiary has a market value of about 5,000 million euros, but its shares have fallen by 27% this year.
The company chaired by José María Álvarez-Pallete claims to have the necessary funds to pay the total consideration for the operation, which would not imply external financing. The purchase would also serve to "simplify" the group's structure.
Likewise, Telefónica also intends to review the German company's dividend program, without prejudice to the already confirmed dividend of 0.18 euros per share corresponding to the year 2023 and whose payment is scheduled for 2024.
