Telefónica €3 billion rights issue

Overview:

• Telefónica has undertaken an SEC-registered underwritten rights offering of over 281 million ordinary shares that raised proceeds of approximately €3 billion.
• The capital raised will be used to fund its subscription to the €4.5 billion share capital increase of its subsidiary Telefonica Brasil carried out to fund the cash consideration of the acquisition of Brazilian fixed-line telecommunications operator GVT from Vivendi.
• The offering was registered both with the Spanish National Securities Market Commission and with the Securities Exchange Commission in the US, and was also qualified in Argentina given the listing of Telefónica’s shares on the Buenos Aires Stock Exchange.
• Telefónica is a diversified telecommunications group that provides a range of services through one of the world’s largest and most modern telecommunications networks.

Adam Majeed - Regional editor