Telefonica launches offer for 28% stake it does not own in German unit (updated)

Telefonica Deutschland Holding AG

07/11/2023 08:12

(Adds market capitalization details, background)
       MADRID, Nov 7 (Reuters) - Spanish telecom firm
Telefonica  TEF.MC  said on Tuesday it has agreed to launch a
public tender offer to buy the 28.19% stake it does not own in
its German unit, Telefonica Deutschland  O2Dn.DE , for 2.35
euros ($2.51) per share in cash.
    Shares of Telefonica Deutschland closed at 1.7075 euros on
Monday evening. They were suspended on Tuesday morning following
the tender offer annoucement.
        The German unit has a market value of around 5 billion
euros and its shares are down 26% year-to-date. The Spanish
telecom firm owns directly or indirectly 71.81% in Telefonica
Deutschland
        The announcement by Telefonica comes a day before it
will publish its multi-year strategy on Wednesday.
  
        Telefonica 
    said
     in July it would shift its focus to cash generation after
years of restructuring its business.
  
        Its chief executive Jose Maria Alvarez-Pallete said he
would present a new strategic plan on Nov. 8 with a focus on
increasing the company's free cash flow, which he said was
expected to be 4 billion euros this year.
  
    ($1 = 0.9353 euros)

 (Reporting by Inti Landauro, editing by Joan Faus)
 ((Inti.Landauro@thomsonreuters.com;))