Under the terms of the public acquisition offer, the shareholders of Telefónica Deutschland will receive €2.35 per share which represents about 37.6% premium over the closing price of the shares of the German firm on 6 November 2023
Telefónica set to launch voluntary public acquisition offer for the remaining 28.2% stake in its German unit. (Credit: Telefónica S.A.)
Telefónica is set to launch a voluntary public acquisition offer to acquire up to 28.19% stake in its German unit Telefónica Deutschland, which it already does not own.
The offer will be made through Telefónica Local Services, a fully owned subsidiary of the Spanish telecommunications service provider.
Under the terms of the public acquisition offer, the shareholders of Telefónica Deutschland will receive €2.35 per share.
According to Telefónica, the consideration represents about 37.6% premium over the closing price of the shares of Telefónica Deutschland on the Frankfurt Stock Exchange on 6 November 2023.
Currently, Telefónica owns nearly 71.8% of the shares in Telefónica Deutschland.
Besides, the Spanish company holds instruments that give the right to acquire about 1.32% of shares in Telefónica Deutschland.
Through the takeover, Telefónica aims to focus on its core geographies including Spain, Brazil, Germany, and the UK as well as its commitment to the German market.
Furthermore, it supports the Spanish telecommunications service provider’s efforts to streamline the group’s structure.
The offer is conditional upon a customary market material adverse change (MAC) condition and regulatory approval to the extent required. It will not be subject to a minimum acceptance threshold.
Bank of America and J.P. Morgan are serving as financial advisors to Telefónica while Gleiss Lutz, Davis Polk & Wardwell and Uría Menéndez are legal advisors.
The offer period, which is anticipated to begin in December 2023, will run until mid-January 2024.
Earlier this year, Telefónica introduced a commercial mobile 5G millimetre (mmWave) network in Spain along with Ericsson and Qualcomm Technologies. The 5G mmWave network was launched at Mobile World Congress 2023 (MWC 2023) held in Barcelona.