Telefonica prepping Spanish infrastructure spin-off?

12 Jan 2016

Spanish telecoms giant Telefonica has reportedly begun the process of spinning off its domestic infrastructure unit, according to Reuters citing a source familiar with the matter. With the company expected to list or make a trade sale in a so-called ‘dual track’ offer process by mid-2016, such a development comes hot on the heels of a November 2015 announcement that Telefonica was reviewing its portfolio of infrastructure assets with a view to exacting more value from them. With regards to the rumoured course of action, the source noted: ‘The process has started, the new unit will be formally registered very shortly and Telefonica wants to move quickly on those plans.’ If created, the new unit would own Telefonica’s 11,500 masts in Spain, as well data centres and some domestic subsea cables, and could be valued at between EUR5 billion and EUR6 billion (USD5.5 billion-USD6.5 billion). Looking ahead, it is also understood that Telefonica has not ruled out adding in the future masts owned by its subsidiaries in other countries – such as Brazil and Germany – to the infrastructure unit’s portfolio.