Telefonica, which is eyeing a partial listing of its LatAm assets this year, is under no pressure to IPO or dispose of further assets as it continues to address its debt pile, its chief operating officer has said.
Speaking at a press briefing in…
Telefonica, which is eyeing a partial listing of its LatAm assets this year, is under no pressure to IPO or dispose of further assets as it continues to address its debt pile, its chief operating officer has said.
Speaking at a press briefing in London, Jose Maria Alvarez-Pallete said the operator had gained significant financial flexibility following its debt-cutting measures.
“Our financial situation is pretty solid,” the COO said. “We have refinanced every single maturity from here to the end of 2014.”
Alvarez-Pallete said Telefonica’s strategy was on track but would not be pinned down on figures; the telco had previously said it hoped to reach €50bn of debt for the end of Q4. It stood at €56bn (US$74bn) at the end of Q3.
“I think we need to keep deleveraging,” he said. “It is not over yet, but we are not forced to do anything because the cash flow generation is on track.”
Recently, Czech media had reported that investment group PPF is eyeing Telefonica’s local unit, however its offers so far have been rejected.
As part of its debt-cutting measures, Telefonica scrapped its dividend last July, refinanced bonds, sold assets such as Spanish call centre Atento and its stake in Hispasat and floated its German unit.
Now the operator is looking at listing its Latin American businesses as a whole unit. No timeframe has been set for the IPO, which would see the stock listed in New York, but analysts have suggested that by listing 10% to 15% it could raise €4bn to €6bn.
