Telefónica looking to integrate TEM, buy out minority shareholders

17 Mar 2006

Spanish telecoms group Telefónica has revealed plans to buy out the minority shareholders in its separately listed mobile telephony unit, Telefónica Móviles (TEM), as part of its attempts to simplify its corporate structure and cut costs. Telefónica owns 92.45% of TEM (71.02% directly and 21.43% via Telefónica Internacional), and plans to buy up the remaining 7.55% of the company via a share swap with minority investors, at a rate of four for five. The offer values TEM’s shares at about EUR10.50, compared with an average price of EUR9.90 over the past month.

Spain, Telefonica, Telefonica Moviles Group