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Press Release -- July 30th, 2018
Source: Telefonica, telxius
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Telefónica incorporates Pontegadea as partner in Telxius, its telecommunication infrastructure company

  • Telefónica incorporates a long-term partner in a holding company that controls its infrastructure arm.
  • Telefónica will maintain control of Telxius and the unit will continue to be consolidated within its accounts.

Telefónica today reached an agreement with Pontegadea for the sale of a 9,99% in Telxius, Telefónica’s telecommunication infrastructure arm, for a total of 378.8 million euros. This transaction represents a price of 15.2 euro per share of Telxius.

The sale has been structured via Telefónica’s subsidiary, Pontel Participaciones, which owns 60% of Telxius’ capital stock. Pontegadea owns 16.65% of Pontel and Telefónica the remaining 83.35%. After the transaction, Telefónica will maintain a majority stake and retain operational control of Telxius. The unit will continue to be consolidated into its accounts.

Additionally, Telefónica, Pontegadea and Pontel have entered into a shareholders’ agreement that regulates the relationship of Telefónica and Pontegadea as shareholders in Pontel, consistent with the shareholders’ agreement among Telefónica, Taurus Bidco S.à.r.l. (“KKR”) and Telxius.

This transaction is part of the Telefónica Group’s asset portfolio management policy, based on a strategy of value creation, optimization of the return on capital and strategic positioning. It also complements the objective of organically reducing debt and strengthening the balance sheet in a growing cash flow scenario, which allows us to maintain a sustainable shareholder remuneration.

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