MADRID (dpa-AFX) - Telefonica SA's (TDE.L, TEF), Telxius Telecom unit offered to sell shares at a price of 12.00 euros to 15.00 euros per share in an initial public offering of the Spanish telephone company's infrastructure business. The pricing will be fixed on September 29, with shares starting to trade on October 3.
The initial public offering of Telexius would value the unit up to 3.7 billion euros, Bloomberg reported.
Telefónica said that the Spanish National Securities Market Commission has approved and entered at the relevant official registry the prospectus for the offering of shares in its telecommunication infrastructures subsidiary Telxius Telecom, S.A.U.
Telefónica plans to sell about 90.91 million shares representing 36.36% of the share capital of Telxius, which may be extended up to a maximum of 40%, if the over-allotment option granted over 10% of the number of shares initially offered is fully exercised.
The Offering will be targeted exclusively to qualified investors and it is intended to be performed through a book-building process, which will commence on 20 September 2016 and will conclude on 29 September 2016.
It is expected that the final sale price per share of the Offering will be established on 29 September 2016 and that the shares of Telxius will start trading on the stock exchanges of Barcelona, Bilbao, Madrid and Valencia and on the Continuous Market of said stock exchanges on 3 October 2016.
Telefonia is said to be looking for 3.5 billion euros for the unit. There were concerns about the assessment of submarine cable assets that connect U.S. with Central and South America. Investors were looking for a lower price for the division that earn 60 percent for the revenue and profit for Telxius, the report said.
The listing of shares of the unit would help Telefonia to pay its debts, that amount to 53 billion euros.
Copyright RTT News/dpa-AFX