Telefónica to take Telxius public in October
Spanish operator values infrastructure arm at €12-15 per share, according to prospectus filed with Spanish regulator
Telefónica will take its infrastructure arm Telxius public in October, according to a prospectus issued to the Spanish stock market regulator.
The Spanish telecoms giant created Telxius in February to looks after its infrastructure assets, including the BRUSA cable that is currently being built between Brazil and Colombia, and the United States.
The flotation, which is for an initial 36.36% stake in Telxius (90.9 million shares) is predicted to raise between €1.09 and €1.36 billion, if investors meet Telefónica's indicative price range of €12-15 per share. However, the Spanish firm has left room to sell up to a 40% stake if the market response remains strong.
This would value the division, which oversees 16,000 wireless towers and an international submarine network of 31,000km at a maximum of €3.75 billion, well below Telefónica's initial target of €5 billion.
According to the prospectus, the shares will be offered to qualified investors as part of a bookbuilding process that will last until 29 September. Pricing is expected to be settled that day ahead of public trading from 3 October.