Telefonic to raise cash to pay for E-Plus

FRANKFURT, GERMANY: Telefonica Deutschland, the German subsidiary of Spanish telecommunications group Telefonica, said it was planning a capital increase to pay for the purchase of rival operator E-Plus.

11 Sep 2014

Telefonica Deutschland is to raise €3.62bn to pay for its rival E-Plus. Image: WN

Telefonica Deutschland said in a statement it will issue 1.117bn new shares at a price of €3.24 each, raising a total €3.62bn in all.

"The funds will be used to pay cash for E-Plus," the statement said.

The EU Commission gave the go-ahead to the deal in July in a deal estimated to worth a total of €8.5bn, which will merge Germany's third and fourth-biggest telecommunications operators.

Telefonica Deutschland said that the €3.62bn capital increase will be by means of a rights issue, where the new shares are offered to existing shareholders first in a ratio of one new share for every existing share held.

The subscription period will run from 10 September until 23 September. The Spanish parent Telefonica, which indirectly holds 76.83% of Telefonica Deutschland, will exercise its subscription rights in full, the statement said.

Source: AFP via I-Net Bridge

Source: I-Net Bridge

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