Telefónica has raised its stake in its German subsidiary to 93.1% through a public tender offer to shareholders, spending approximately EUR 1.5 billion in cash.
The operator announced an increase in its ownership stake from around 71.8% at the time of the public acquisition announcement in November 2023 to 630 million shares, representing over 21 percent. The offer is expected to be settled on January 26, 2024.
When it launched the tender offer, it stated that it wanted to acquire the 28.1% of Telefónica Deutschland that it did not already own. Telefonica originally stated that it would pay EUR 2.35 per share, a 37.6 percent premium over its share price at the time.
Investing in Core Markets
The decision to increase its stake supports the operator group’s overall strategy of focusing on core markets such as Spain, Brazil, the United Kingdom, and Germany. The company has emphasized that Germany is one of Europe’s most attractive and stable telecoms markets. The selected core markets are recognized as innovation hubs, with a strong emphasis on technology adoption and digital transformation.
The geographical locations of these core markets strategically position the operator to cater to diverse and well-established business landscapes. Spain, Brazil, the United Kingdom, and Germany provide a comprehensive footprint, enabling the operator to serve both local demands and international connectivity needs effectively.
The economic strength of these core markets contributes to the operator’s overall financial stability and growth prospects. Investing in regions with solid economic foundations enhances the likelihood of sustained business success, as these countries typically demonstrate resilience and adaptability to market fluctuations.
Establishing a significant presence in these core markets allows the operator to navigate regulatory landscapes with which it is likely more familiar. This familiarity facilitates smoother operations, compliance adherence, and the ability to proactively address any regulatory changes that may impact the telecom and ICT sectors.
