Telefónica, a Spanish telecommunications company, has decided to make a voluntary public acquisition offer in the form of a partial offer to purchase up to 28.19% of its German subsidiary, Telefónica Deutschland, for EUR 2.35 per share in cash.
The offer price represents a premium of approximately 37.6% over the closing price of the shares on the Frankfurt Stock Exchange and a premium of 36.3% over the preceding three-month volume-weighted average price of the shares.
Telefónica currently owns approximately 71.81% of Telefónica Deutschland (directly and indirectly). Furthermore, Telefónica has instruments that give it the right to acquire approximately 1.32% of Telefónica Deutschland's shares.
The offer reinforces Telefónica's strategy of focusing on its core geographies (Spain, Brazil, Germany and the United Kingdom) as well as its strong commitment to the German market, which represents one of Europe's most attractive and stable telecom markets. It also contributes to Telefónica's efforts to streamline the group's structure.
The offer period is expected to begin in December 2023 and end in mid-January 2024.
Telefónica intends to promote a revision of Telefónica Deutschland's current dividend policy beyond the already-confirmed EUR 0.18 dividend per share for the financial year 2023, which is expected to be paid in 2024. Telefónica Deutschland's future dividend policy will reflect the needs resulting from the implementation of its current business plan and will be subject to future spending and investment plans, as well as other existing or potential risks and contingencies.
