Telefonica bags USD1.25bn in share sale

27 Mar 2013

Spanish telecoms giant Telefonica raised EUR975 million (USD1.25 billion) though the sale of its treasury stock yesterday, capitalising on a share price rally following better than expected results in H2 2012. Reuters writes that Telefonica’s shares rose 14% since it announced its results at end-February, a statement from the telco noting: ‘This decision was a response to the increased interest from the market in recent weeks due to the company’s good performance in the second half of 2012.’ The group placed 90 million shares – equivalent to around 2% of its capital – at EUR10.8 per share, below Monday’s closing price of EUR11.24. Telefonica will use the funds to lessen its debt burden, which stood at EUR51.3 billion at end-2012, and has set a target of reducing debt to under EUR47 billion by end-2013.

Spain, Telefonica