Telefonica Bolsters Control Over German Unit with 93.1% Stake Acquisition

The offered price for each share in this transaction was set at 2.35 euros ($2.56).

Spain’s telecommunications giant, Telefonica (TEF.MC), announced on Monday that it has successfully increased its ownership stake in its German subsidiary, Telefonica Deutschland (O2Dn.DE), to a significant 93.1%.

This achievement comes as a result of a tender offer that Telefonica initiated to acquire additional shares in the German unit.

In a move that was initially unveiled back in November, Telefonica expressed its intention to purchase the remaining 28.19% of Telefonica Deutschland that it did not already own.

The offered price for each share in this transaction was set at 2.35 euros ($2.56).

During the course of the public tender offer, Telefonica was able to acquire approximately 630 million shares from minority shareholders, equivalent to an approximate 21% stake, at a total cost of about 1.48 billion euros.

This strategic move signifies a consolidation of Telefonica’s control over its German subsidiary.

The completion of this transaction is anticipated to occur on Friday, marking a significant milestone in Telefonica’s ongoing efforts to refine its business strategy.

Telefonica Deutschland is currently valued at approximately 7 billion euros, reflecting its prominent position in the German telecommunications market.

This development aligns with Telefonica’s broader three-year strategic plan, which centers on focusing its resources and efforts on its four primary markets: Spain, Brazil, Britain, and Germany.

By concentrating its operations in these key regions, the company aims to enhance its overall profitability.

Telefonica intends to achieve this goal by implementing measures such as reducing capital expenditures, increasing revenue, and cutting operational costs.

This strategic acquisition underscores Telefonica’s commitment to strengthening its presence in the German telecommunications sector.

As the company continues to execute its strategic plan, it seeks to optimize its performance and enhance its competitiveness in its core markets while delivering value to its shareholders.