Spain’s Telefonica has sold O2 Ireland to Hong Kong’s Hutchison Whampoa for an initial €780m, which could rise to €850m should the Irish unit meet certain financial targets.
Hutchison said the acquisition takes its market share in Ireland to…
Spain’s Telefonica has sold O2 Ireland to Hong Kong’s Hutchison Whampoa for an initial €780m, which could rise to €850m should the Irish unit meet certain financial targets.
Hutchison said the acquisition takes its market share in Ireland to 37.5%. The transaction will take the number of operators in the country down from four to three and is subject to competition approvals.
Robert Finnegan, CEO of Hutchison’s Three Ireland, commented: “Our ability to invest coupled with the combined subscriber base will create new competitive dynamics in the Irish telecoms market.”
Finnegan added that the deal, which creates a player with combined revenues of €803m, was a vote of confidence for the Irish market.
Telefonica said the deal would take €780m off of its net debt as it looks to cut its pile from €51bn to €47bn by the end of the year. The indebted Spanish incumbent said it was part of the “proactive management” of its portfolio as it looks to delever.
It recently sold a 40% stake in its Central American unit for €382m, and has reportedly enlisted BofA Merrill Lynch to consider further asset sales in countries such as the Czech Republic.
Last week Telefonica was linked with a reported €70bn sale to AT&T. Telefonica said it had not received an approach but its shares still jumped 3%on the news.
