Telefonica to control 96.75% of Chilean subsidiary

3 Nov 2008

Spain’s Telefonica said yesterday that it had secured control of 96.75% of its Chilean unit Telefonica Chile, following a buyout offer to shareholders aimed at gaining sole control of its affiliate. Telefonica, which already held 44.9% of Telefonica Chile before the buyout, said it would spend around USD815 million to buy back shares from shareholders who have agreed to its offer. Shareholders agreed to the buyout after the company raised its original offer by 10% last month. It will purchase the shares on Tuesday. ‘With the end of this operation, only 2% of the company’s shares remain floating on the local market. In New York, 1.25% of ADR shares will continue to trade on the New York Stock Exchange,’ Telefonica said in a statement.

Chile, Telefonica, Telefonica Moviles Chile (Movistar)