Telefonica mulling options for O2 UK, including IPO or private equity sale

22 Jun 2016

Telefonica is reportedly considering a possible flotation of its British subsidiary O2 UK, according to the Financial Times. With the Spanish telecoms giant said to be moving forward with such plans to raise money from the business after its sale to CK Hutchison was blocked by the European Commission (EC) last month, it has reportedly opened talks with banks about advising on an initial public offering (IPO) process. While two unnamed sources were cited as saying that the current thinking is leaning towards a flotation in London, it has been stressed that a final decision is yet to be made, with Telefonica still looking at all options for O2 UK, including a sale to private equity. Indeed, it has been claimed that the Spanish group is currently talking with private equity groups interested in acquiring the business, though a flotation is said to be favoured by O2 UK’s chief executive Ronan Dunne, who is overseeing the process in the UK for the Spanish company.

United Kingdom, O2 UK, Telefonica