Telefónica (TEF) Prices German Unit IPO; Sees Gross Proceeds of EUR 1.52B

October 16, 2012 1:37 PM EDT
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Telefónica Deutschland Holding AG, Telefónica S.A. (NYSE: TEF) and the syndicate banks have determined further details of the company’s planned initial public offering (IPO). The price range for orders for the IPO has been set at €5.25 to €6.50 per share. The offer period starts on October 17, 2012 and is scheduled to end on October 29, 2012. The listing of the shares on the regulated market (Prime Standard) of the Frankfurt Stock Exchange is planned for October 30, 2012.

The offering consists of 225 million registered shares, as well as potential over-allotments (greenshoe option) of up to 33.75 million registered shares. The offered shares are registered shares with no par value and are provided by Telefónica S.A.

At the mid-point of the price range, the offer corresponds to a placement volume of €1,520 million assuming full exercise of the greenshoe option. The targeted free float following the IPO, upon placement of the shares offered, including full exercise of the greenshoe option, is approximately up to 23.17 per cent. The offering comprises a public offer to institutional and retail investors in Germany and Luxembourg and private placements in certain jurisdictions outside Germany and Luxembourg.

“Our strong revenue growth over recent years as well as our internal efficiency enhancement initiatives has enabled us to increase cash flow which we will use to drive further growth and deliver attractive shareholder returns,” says René Schuster, CEO of Telefónica Deutschland. “We believe we offer an attractive value proposition to investors and are looking forward to our future as a listed company.”

René Schuster added: “We expect that the results for the third quarter of 2012 will reflect the continued execution of our strategy. We are content with our performance through this period, which is in line with internal expectations. We expect to be able to show good year–on–year growth in many metrics, including continued growth in post–paid customers. Our Wireless Service Revenues will continue to increase, although at a lower rate than in the previous quarters, on the back of a particularly strong result in the three months ended September 30, 2011. We expect OIBDA to deliver strong growth in line with previous quarters.”

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