Spanish telecoms giant Telefonica has confirmed that it has paid out a capital increase of EUR324 million (USD437 million) to Telco, the holding company which controls 22.39% of Telecom Italia (TI), in return for a number of non-voting shares. Following the transaction, which has been endorsed by its fellow shareholders in Telco, Telefonica will see its interest in total share capital increase to 66%, although its voting stake will remain unchanged at 46.18%.
Telefonica notes that the current governance at Telco’s level remains unaffected, including the obligation by Telefonica of abstaining from participating or influencing any decisions which could affect the markets in which both Telefonica and TI are present. Going forward, subject to receiving any required anti-trust and telecoms approvals – including in Brazil and Argentina – the Spanish telco will pay out a second capital increase in Telco, through the contribution of EUR117 million, and see its total share capital increase to around 70%.