Telefonica offloads 9.99% stake in Telxius

30 Jul 2018

Telefonica has reached an agreement with Pontegadea for the sale of a 9.99% stake in Telxius, its infrastructure arm, for a total of EUR378.8 million (USD441.5 million). This transaction represents a price of EUR15.2 per Telxius share. The sale has been structured via Telefonica’s subsidiary, Pontel Participaciones, which owns 60% of Telxius’ capital stock. Pontegadea owns 16.65% of Pontel and Telefonica the remaining 83.35%. After the transaction, Telefonica will maintain a majority stake and retain operational control of Telxius. The unit will continue to be consolidated into its accounts.

Additionally, Telefonica, Pontegadea and Pontel have entered into a shareholders’ agreement that regulates the relationship of Telefonica and Pontegadea as shareholders in Pontel, consistent with the shareholders’ agreement among Telefonica, Taurus Bidco (KKR) and Telxius.

Spain, Telefonica, Telxius