Telefónica announces the completion of the acquisition of a further 5.65% of its German subsidiary for 395 million | Companies

Telefónica has decided to launch a public offer to acquire what remains of its German subsidiary, 5.65% of the capital, for a maximum amount of 395 million euros, according to the operator National Stock Market Commission. (CNMV).

The consideration offered to shareholders of the German subsidiary is 2.35 euros per share in cash, the company explained in a note sent to the National Securities Market Commission (CNMV).

The exclusion offer will be formulated as a public takeover offer and will not be subject to any conditions. Telefonica has at its disposal the necessary funds to pay the maximum total remuneration amount. Telefónica believes that the carve-out proposal offers the remaining shareholders of Telefónica Deutschland a new window of liquidity at an attractive price.

Last November, Telefónica submitted a voluntary takeover bid for its German subsidiary, which saw it increase its stake in Telefónica Deutschland from 71.81% to a percentage in excess of 93%, for a total of €1.483 million. The consideration then offered, €2.35 in cash for each share, would be the same as in this new non-takeover offer, which would not be subject to any conditions.

Trading of Telefónica Deutschland shares on the regulated market of the Frankfurt Stock Exchange will cease following the effective exclusion from trading, which may lead to a further reduction in the liquidity and affordability of Telefónica Deutschland shares. which, in turn, could cause the share price to fall.

Delisting will also reduce Telefónica Deutschland’s financial reporting obligations as it will no longer be required to comply with the financial reporting obligations applicable to the listed company.

The exclusion offer acceptance period will begin upon publication of the offer document, which is scheduled for late March/early April 2024.

Telefónica has informed Telefónica Deutschland that they do not currently intend to maintain the payment of dividends beyond the already confirmed dividend of €0.18 per share corresponding to the 2023 financial year.

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