Telefonica confirms O2 UK IPO under consideration

Nieuws Mobiel Verenigd Koninkrijk 5 SEP 2016
Telefonica confirms O2 UK IPO under consideration
Telefonica has confirmed that a stock market listing is among the options under consideration for its unit O2 UK. Following a number of media reports suggesting an IPO was in the works, Telefonica issued a statement saying it's considering various strategic options, all of which would involve the Spanish operator maintaining a majority stake in the UK company. 

These options include, among others, a potential initial public offering, and preparatory work in connection with the options has started, the company said. Further details were not provided. 

The news comes the same day Telefonica said it's going ahead with an IPO of its infrastructure arm Telxius this year. The company is looking for ways to raise cash in order to reduce its debt, after the proposed sale of O2 UK to CK Hutchison was blocked by EU regulators. The Spanish operator has already listed its German subsidiary, while the weak economic climate in Latin America makes any listing or sale of its operations there more difficult. With net debt of EUR 52.6 billion at the end of June, Telefonica's leverage stood at 3.2 times annual OIBDA. 

Categories:

Mobiel

Companies:

O2 UK,  Telefonica

Countries:

Verenigd Koninkrijk

Tags:

Shareholders & subsidiaries, Corporate strategy, Financial funding, M&A buyouts & divestments

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