Telefónica, the Spanish telecommunications group, plans to buy out minority shareholders in its separately listed mobile telephony unit, in the latest move to simplify its corporate structure and cut costs.
The company is planning to swap shares in the parent company for the 7.5 per cent of Telefónica Móviles it does not already own, at a rate of four for five. It will formally propose the deal at board meetings in both companies. The offer, worth about 3.5 billion euro ($4.2 billion), valued the subsidiary’s shares at about 10.5 euro, compared with an average price of 9.9 euro over the past month.
The sale or integration of non-core interests coincides with aggressive expansion by Telefónica in its main business areas.
