Telefonica Launches Bid to Take Full Ownership of Telefonica Deutschland Holding
Telefonica, the Spanish telecommunications company, is making a bold move to acquire full ownership of Telefonica Deutschland Holding. The company is offering a substantial sum of 1.97 billion euros ($2.11 billion) for the shares it currently does not hold.
A Lucrative Offer
In its bid to secure complete ownership, Telefonica is willing to pay EUR2.35 per share for the 28.19% stake in Telefonica Deutschland that is not already under its control or available for acquisition. This offer represents a generous 38% premium compared to Telefonica Deutschland's closing price of EUR1.71 on the previous trading day.
Plans for the Future
Telefonica has ambitious plans for Telefonica Deutschland, including a revision of its dividend policy. In addition to the already confirmed payout of EUR0.18 per share for this year, Telefonica intends to provide an alternative means for Telefonica Deutschland investors to access liquidity.
Moreover, the acquisition offer will enhance Telefonica Deutschland's contribution to the group's consolidated profit and cash flow, aligning with Telefonica's strategy of focusing on core markets.
Conclusion
As Telefonica takes steps towards full ownership of Telefonica Deutschland Holding, significant changes and improvements are on the horizon. This bid offers an exciting opportunity for both companies, and Telefonica is eager to make its mark in the telecommunications industry.
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