Telefonica plans asset sales, stock div to boost cash

News General Spain 31 MEI 2012
Telefonica plans asset sales, stock div to boost cash
Telefonica has announced plans to conserve and boost its cash position, through asset sales and moving to a stock dividend. The management board announced that it will pursue an IPO of Telefonica Germany as well as look at possible listings of some Latin American businesses. It will also consider "selective asset monetisations", with the accelerated sale of non-core activities. In addition, the Spanish operator proposed to switch to a final dividend for 2012 all in shares. The company said over 60 percent of shareholders opted for the stock dividend last year. It reiterated the dividend for 2012 will total EUR 1.30 (plus EUR 0.20 per share in share buybacks) and proposed paying an interim dividend in cash of EUR 0.40 per share and the remainder in stock next spring. It also maintained a forecast for shareholder remuneration of at least EUR 1.50 per share in 2013, but said the make-up of this will be decided later, based on market conditions. The company said the measures are aimed at keeping its net debt below 2.35 times OIBDA this year.

Categories:

General

Companies:

Telefonica- Movistar,  Telefonica Germany

Regions:

Latin America and the Caribbean

Countries:

Germany,  Spain

Tags:

Finance, Corporate strategy, M&A buyouts & divestments

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