Telefónica wants to keep the percentage of its German subsidiaryTelefónica Deutschland, that is not yet under your control. To get it has launched a takeover bid about their actions. This is 28.19% of its total securities, for which Telefónica wants to pay a maximum of 2,000 million euros to turn the company private. The operator controls, directly or indirectly, the rest of the actions.
This step comes several weeks after the loss of an important contract caused the value of the German operator’s shares to drop significantly, which have risen again after learning of the purchase offer received. With it, Telefónica will pay 2.35 euros for each share of its subsidiary, which represents a premium over the closing price of its shares on the Frankfurt Stock Exchange on November 6 of approximately 37.6%. The price is also 36.3% higher than the volume-weighted average price of the German operator’s shares over the last three months.
With this step, Telefónica reinforces its strategy of focusing on its four main markets: Spain, Brazil, the United Kingdom and Germany. In addition, it advances its intention to simplify the structure that the group currently has, and shows “its strong commitment to the German market.”
Within the framework of the offer, furthermore, Telefónica intends to reviewtogether with the management team of its German subsidiary, Telefónica Deutschland’s current dividend policy. This will not affect the company’s dividend of 0.18 euros per share in 2023, already confirmed, and which is scheduled to be paid in 2024.
With this review, the subsidiary’s dividend policy will respond to the needs of the execution of its business plan. Therefore, it is subject, among other things, to the future spending and investment plans it poses, as well as other risks and contingencies that appear or may appear.
