Incumbent operator Telefonica has sold its 13.23% stake in Spanish satellite operator Hispasat for €124m (US$164.5m) which will result in a capital gain for the indebted telco of €47m.
Spanish infrastructure group Abertis acquired 7.23% for €68m…
Incumbent operator Telefonica has sold its 13.23% stake in Spanish satellite operator Hispasat for €124m (US$164.5m) which will result in a capital gain for the indebted telco of €47m.
Spanish infrastructure group Abertis acquired 7.23% for €68m while satellite operator Eutelsat bought 6% for €56m.
Telefonica originally planned to dispose the stake in February last year when Abertis agreed to buy its entire holding in Hispasat for €124m.
That deal was scuppered by Eutelsat, which had the option to acquire part of Telefonica’s stake as an existing shareholder.
Eutelsat exercised its pre-emption right which allowed it to buy a proportion of Telefonica’s shares in relation to its capital stake. That meant it could buy a maximum of 45.33% of the telco’s stake, which equated to 6% of the company.
Eutelsat now holds 33.69% and it may try to build its share further in the future.
“Eutelsat has always expressed its interest in increasing its stake in Hispasat and this transaction reflects this objective,” a spokesperson for the company said.
For Telefonica the disposal is part of its continued effort to pare down its debt. The telco reported net debt of €56bn at the end of Q3, €2bn less than its half-year results.
The incumbent has said it aimed to reduce its net debt to €50bn by the end of 2012. It plans to release its full year results on 28 February.
As part of its debt-cutting measures Telefonica scrapped its dividend last July, refinanced bonds, disposed of assets and floated its German unit. The company is now plotting the flotation of its Latin American businesses. Listing a 15% stake could net Telefonica €6bn.
