Telefonica gets green light to increase ownership in Argentine unit

7 Dec 2009

Argentine securities regulator, Comision Nacional de Valores (CNV), has approved Telefonica of Spain’s acquisition of the 1.8% of its subsidiary Telefonica Argentina (TdA) that it does not already own, BNamericas reports citing local press reported. The Spanish group offered one Argentinean peso a share – or its equivalent in US dollars – for the roughly 126 million shares of TdA it does not control in June 2009. A month earlier, a minority shareholder at TdA called on Telefonica to launch an offer for the remaining shares, highlighting that under Argentine law, companies must make a 100% offer once they control more than 95% of a company’s shares. Telefonica currently controls 98.2% of its Argentine unit, while the remainder is in free float. The total value of the operation is expected to reach EUR22 million (USD32.7 million).

Argentina, Telefonica, Telefonica Argentina (Movistar)