Spanish incumbent Telefonica has officially announced plans to list its German operations on the Frankfurt Stock Exchange in Q4 2012.
In a statement today the company said it had not yet determined the size of the stake it is seeking to list, although…
Spanish incumbent Telefonica has officially announced plans to list its German operations on the Frankfurt Stock Exchange in Q4 2012.
In a statement today the company said it had not yet determined the size of the stake it is seeking to list, although the parent group plans to remain a majority shareholder in the unit, called Telefonica Deutschland.
Rene Schuster, Telefonica Deutschland’s CEO, said: “We are convinced that an IPO will enable us to raise our profile further, and to continue the successful growth story of Telefonica Deutschland in Germany in the long term.”
JP Morgan and UBS are acting as global coordinators and joint bookrunners for the IPO. Further joint bookrunners include BofA Merrill Lynch, BNP Paribas, Citigroup and HSBC.
Banca IMI, BayernLB, BBVA, Commerzbank, Banco Santander and Societe Generale are acting as co-lead managers.
Citing a financial source, Reuters claimed the group is looking to sell a 10-20% stake in the unit, which it has reportedly valued at €10bn.
Pressured by its domestic operations, the Madrid-based operator has been seeking ways to cut debt, improve liquidity and maintain agency ratings.
Cesar Alierta, the company’s chairman, told investors in July that it planned to launch the German IPO in Q4 this year, after deciding that “swift action” was needed.
Telefonica Deutschland is the smallest mobile operator in Germany, behind Deutsche Telekom, Vodafone and KPN’s E-Plus.
For H1 2012, its revenues reached €2.6bn with OIBDA at €597m, corresponding to year-on-year increases of 5% and 12%, respectively.
As of 30 September 2012, Telefonica Deutschland’s net debt was around €1.1bn. The company said that over the medium term it targets a net debt/OIBDA leverage ratio of below 1.0.
Telefonica Deutschland CFO Rachel Empey said: “Our results in the first half of 2012 prove our healthy growth. We intend to drive profitable growth and efficiency resulting in enhanced cash flow generation.”
