Telefonica could sell assets to Telxius

Telefonica is considering selling mobile and towers and fibre cables to its subsidiary Telxius (50.01%9 with the aim of giving greater visibility to the value of these assets, taking account of the major recognition telecommunications infrastructure is receiving in the markets.

The management has already announced that it is looking for options for giving value to its infrastructure assets. It believes that transferring these assets to its subsidiary Telxius, which has 17,550 towers and 65,000 km of under sea fibre cables, is probably the most sensible option. This operation would also allow it to continue reducing debt.

According to the business daily Expansion, the President of Telefonica has brought forward by two weeks the next meeting of the Board, which will be on 10 September confronting the sharp fall in share value in recent weeks, and we believe it could take a decision on this issue.

Analysts at Renta 4 commented about the Q219 results that the monetisation of infrastructure assets is one of the main catalysts of the shares. Positive news with positive impact on share value. Objective prices under review (previously 9.20 euros/share). Overweight.