Telefónica German listing to raise €1.5 billion

16 October 2012 |


Telefónica aims to raise €1.52 billion through the listing of up to 23.17% of its German unit.

The Spanish carrier is planning a price range of €5.25 to €6.50 per share, with the offer period for the 225 million shares beginning on October 17 and scheduled to end on October 29. A listing on the Frankfurt Stock Exchange is scheduled to follow on October 30.

"Our strong revenue growth over recent years, as well as our internal efficiency enhancement initiatives, has enabled us to increase cash flow which we will use to drive further growth and deliver attractive shareholder returns," said René Schuster, CEO of Telefónica Deutschland. "We believe we offer an attractive value proposition to investors and are looking forward to our future as a listed company."

The listing comes as Telefónica looks to cut its €57 billion debt through asset sales and restructuring.

The carrier must raise between €7 an €8 billion a year through to 2015 to cover its debt repayments and risk rising refinancing costs if its credit ratings are cut, according to Reuters.

The pricing places the overall value of the unit at approximately €6.6 billion.