Telefonica Buys German Subsidiary’s Shares

Telefonica buys German subsidiary shares

TELEFONICA DEUTSCHLAND: Headquartered in Munich Photo: Flickr/Rodolfo Bontempi

TELEFONICA is set on acquiring all the shares in its German subsidiary, which is currently worth approximately €5 billion.

The Spanish multinational has launched a public tender to buy up the remainder of the holding that it does not already own in Telefonica Deutschland, paying €2.35 per share. The acceptance period began on December 5 and continues until January 17 next year.

The offer is 37.6 per cent above the share price at close of business the day before the offer was announced in November but below this year’s high of €3.15 in early 2023.

Information in the brochure published on December 5, when the German authorities officially approved the deal, revealed that Telefonica now possesses an additional 9.4 per cent stake, reducing to 18 per cent the outstanding number of shares.

The Spanish multinational spent €57 million on buying up 30.7 million Telefonica Deutschland shares over two days following the announcement last August that the German subsidiary had lost to Vodafone its contract to provide 5G coverage for telecoms company 1&1.

Telefonica’s Chief Financial officer Laura Abasola also refuted rumours that the company planned to de-list Telefonica Deutschland.

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Written by

Linda Hall

Originally from the UK, Linda is based in Valenca and is a reporter for The Euro Weekly News covering local news. Got a news story you want to share? Then get in touch at editorial@euroweeklynews.com.

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