Telefonica Deutschland in capital increase to fund E-Plus deal

9 Sep 2014

Telefonica Deutschland plans to raise EUR3.62 billion (USD4.68 billion) through a capital increase to help fund its acquisition of Dutch telecoms operator KPN’s German mobile unit E-Plus, reports Reuters. Telefonica will issue 1.16 billion new shares at a subscription price of EUR3.24 per share, to be offered to current shareholders at a ratio of 1:1. The subscription period is expected to start on 10 September and run until 23 September. Any shares not purchased by shareholders will be taken up by the consortium of banks underwriting the offer. Late last month Telefonica Deutschland received final European Commission (EC) clearance for its EUR8.55 billion acquisition of E-Plus, raising the potential for further consolidation in other European telecoms markets. The combination of Telefonica and E-Plus will reduce the number of German network operators from four to three, with the enlarged Telefonica becoming the market leader ahead of Telekom Deutschland and Vodafone Germany.

Germany, E-Plus Group, Telefonica Deutschland Holding