We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Telefonica (TEF) Mulling Over an IPO of O2 UK This Year?
Read MoreHide Full Article
According to a recent Reuters report, Spanish telecom behemoth Telefonica SA (TEF - Free Report) is moving ahead with a proposed IPO (initial public offering) for its U.K. wireless unit O2 UK in Dec 2016. However, Reuters also reported that if the market conditions remain volatile, the IPO may be shifted to the first quarter of 2017. Notably, just a few days ago, The Telegraph reported that Telefonica is preparing for the IPO of its U.K. wireless unit early next year.
Telefonica has hired Barclays, UBS, Morgan Stanley and a fourth investment bank for this purpose. Marketing agency Finsbury will take care of the public relations part of the proposed IPO. The company is likely to divest a 30% stake of O2 UK through the IPO. Reuters reported that the IPO could value the O2 UK unit around GBP 10 billion (more than $13 billion).
It is worth mentioning that last week, Telefonica filed an IPO prospectus for its infrastructure division Telxius, to the Spanish stock market regulator, the Comisión Nacional del Mercado de Valores (CNMV). In May 2016, Bloomberg reports stated that Telefonica is mulling over an IPO for Telxius and O2. In the meantime, the company has been grappling with issues such as the Brexit, Britain’s vote to leave the European Union, which delayed the process.
At present, the U.K. wireless market is dominated by four large players. Apart from O2, 3UK and Vodafone Group Plc. (VOD - Free Report) , BT Group Plc. has emerged as a key player in this space after its acquisition of British mobile network operator EE, earlier jointly controlled by Orange SA (ORAN - Free Report) and Deutsche Telekom AG.
Telefonica’s debt currently stands at approximately €52.2 billion (around $58 billion). The company had planned to reduce its debt burden through the divestment of its O2 division. However, the plan fell through as the transaction failed to materialize. According to some industry watchers, Telefonica may now be forced to sell some of its core assets to raise cash and pay-off debt. Else its debt rating may be badly affected.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Telefonica (TEF) Mulling Over an IPO of O2 UK This Year?
According to a recent Reuters report, Spanish telecom behemoth Telefonica SA (TEF - Free Report) is moving ahead with a proposed IPO (initial public offering) for its U.K. wireless unit O2 UK in Dec 2016. However, Reuters also reported that if the market conditions remain volatile, the IPO may be shifted to the first quarter of 2017. Notably, just a few days ago, The Telegraph reported that Telefonica is preparing for the IPO of its U.K. wireless unit early next year.
Telefonica has hired Barclays, UBS, Morgan Stanley and a fourth investment bank for this purpose. Marketing agency Finsbury will take care of the public relations part of the proposed IPO. The company is likely to divest a 30% stake of O2 UK through the IPO. Reuters reported that the IPO could value the O2 UK unit around GBP 10 billion (more than $13 billion).
It is worth mentioning that last week, Telefonica filed an IPO prospectus for its infrastructure division Telxius, to the Spanish stock market regulator, the Comisión Nacional del Mercado de Valores (CNMV). In May 2016, Bloomberg reports stated that Telefonica is mulling over an IPO for Telxius and O2. In the meantime, the company has been grappling with issues such as the Brexit, Britain’s vote to leave the European Union, which delayed the process.
At present, the U.K. wireless market is dominated by four large players. Apart from O2, 3UK and Vodafone Group Plc. (VOD - Free Report) , BT Group Plc. has emerged as a key player in this space after its acquisition of British mobile network operator EE, earlier jointly controlled by Orange SA (ORAN - Free Report) and Deutsche Telekom AG.
Telefonica’s debt currently stands at approximately €52.2 billion (around $58 billion). The company had planned to reduce its debt burden through the divestment of its O2 division. However, the plan fell through as the transaction failed to materialize. According to some industry watchers, Telefonica may now be forced to sell some of its core assets to raise cash and pay-off debt. Else its debt rating may be badly affected.
TELEFONICA S.A. Price
TELEFONICA S.A. Price | TELEFONICA S.A. Quote
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>