Telefonica has raised around €687m (US$854m) from selling roughly half of its 5.01% stake in China Unicom, according to a regulatory filing.
The Spanish incumbent telco said it sold 597.8 million shares at HK$11.14 (US$1.44) each through a block trade…
Telefonica has raised around €687m (US$854m) from selling roughly half of its 5.01% stake in China Unicom, according to a regulatory filing.
The Spanish incumbent telco said it sold 597.8 million shares at HK$11.14 (US$1.44) each through a block trade to increase its financial flexibility.
It represented about a 3% discount to the last traded price of China Unicom, China’s second-largest mobile operator, on Hong Kong’s stock exchange.
BofA Merrill Lynch ran the sale and the block trade was at the bottom of an earlier price range that reached HK$11.34 (US$1.46), according to reports citing a term sheet.
It is the latest in a series of non-core disposals for Telefonica as the group raises funds for acquisitions in Europe and Latin America.
Telefonica recently agreed a €7.24bn (US$9bn) deal to buy Vivendi’s Brazilian broadband unit GVT, and is reported to be considering a joint multibillion-dollar bid for TIM Brasil, the country’s second-biggest telecoms player.
The Spanish giant sold 4.56% of China Unicom back in July 2012 to its parent, China United Network Communication Group, for HK$10.75bn (US$1.39bn).
The two telcos had struck a strategic alliance in 2009 that saw them buy stock in each other’s businesses.
Telefonica said it remained committed to the strategic alliance with China Unicom following its latest sale.
The group is barred from selling any more of the Chinese group’s shares for the next 90 days.