Bankinter | Telefónica has launched a takeover bid for 28.19% of its subsidiary in Germany. The company owns the remaining 71.81% of the capital and voting rights of the German subsidiary. The Offer will be formulated as a purchase and sale of shares.
The consideration offered to Telefónica Deutschland shareholders is €2.35 in cash per share, representing a premium of approximately (i) 37.6% to the closing price of Telefónica Deutschland yesterday; and (ii) 36.3% to the volume weighted average price of Telefónica Deutschland over the three months prior to this announcement.
Telefónica’s analysis team’s view: The reasons for Telefónica to carry out this transaction are: (i) To increase Telefónica Deutschland’s contribution to Telefónica’s consolidated profit and cash flows attributable to Telefónica’s shareholders; (ii) To reinforce its strategy of focusing on its main geographic markets (i.e. Spain, Brazil, Germany and the UK); (iii) To increase Telefónica Deutschland’s contribution to Telefónica’s consolidated profit and cash flows attributable to Telefónica’s shareholders, Spain, Brazil, Germany and the UK) and its firm commitment to the German market, one of the most attractive and stable telecommunications markets in Europe;(iii) Simplify the structure of the Group and increase the cash flows in euros generated in the Group. The premium is very attractive and we recommend accepting the offer.