On Monday, the Spanish company “Telefonica” announced that their ownership stake in the German unit “Telefonica Deutschland” reached 93.1 percent during a tender offer they launched to purchase shares in the company.
The Spanish company announced in November that it would offer to purchase 28.19% of “Telefonica Deutschland” for $2.56 per share.
According to the group’s data, “Telefonica” owned around 70 percent of its subsidiary’s shares in Germany.
Telefonica purchased around 630 million shares from minority shareholders, representing approximately 21 percent of the shares, for $1.61 billion. The settlement of the offer is expected to take place on Friday.
The market value of “Telefonica Deutschland” company is approximately 7 billion euros.
The deal is part of the strategic plan of the Spanish telecommunications company, which spans three years, to focus on the largest four markets in Spain, Brazil, Britain, and Germany. The company aims to enhance profitability by reducing capital expenses, increasing revenue, and cutting costs.
In September, the Saudi Arabian telecommunications company, STC, acquired 9.9% of Telefonica Group’s shares with a total value of $2.29 billion.
