Telefonica outlined plans to launch a public tender offer to shareholders for a 28.2 per cent stake in its Germany unit, a move it stated reinforces focus on its core markets and highlights its commitment to the country.
The company stated it will make a cash offer of €2.35 per share, representing a 37.6 per cent premium to the closing share price yesterday (6 November).
Telefonica explained its proposal is not subject to a minimum acceptance threshold, and the offer period will commence in December and run until mid-January 2024.
The operator currently holds approximately 71.8 per cent of Telefonica Deutschland shares and its overall value stands at around €5 billion.
If the offer is accepted, Telefonica said it will move to revise its current dividend policy for the German unit beyond the €0.18 per share it confirmed for this year.
Telefonica has set out a strategy to focus on its main markets of Spain, Brazil, the UK and Germany, the latter of which it sees as “one of the most attractive and stable telecoms markets in Europe”.
It added the offer to take full ownership of Telefonica Deutschland supports efforts to simplify the group’s structure.