Telefonica Said to Weigh IPO for O2 as Soon as Year-End

Telefonica Said to Weigh IPO for O2 as Soon as Year-End

Foto: Fotolia

Telefonica is considering an initial public offering for its U.K. mobile-phone unit O2 as soon as the end of the year, people familiar with the matter said, as the Spanish telecommunications company looks for ways to reduce debt, according to Bloomberg.

Telefonica has resumed work on the listing and could seek to sell a minority stake in the fourth quarter, depending on market conditions, the people said, asking not to be identified because the deliberations are private. No final decision has been made and the Madrid-based parent company could postpone or cancel the plans or sell the holding to a bidder instead, they said. A spokeswoman for Telefonica declined to comment.

Last year, the U.K.’s decision to leave the European Union shook stock markets and forced Telefonica to shelve plans for the unit. It wasn’t the first time that politics intruded on Telefonica’s plans for O2 as earlier in the year EU regulators blocked its plans to sell the unit for as much as 10.25 billion pounds to CK Hutchison’s Three.

Telefonica’s goal for 2017 is to cut its approximately 49 billion euros ($53 billion) in debt by improving its cash generation. Earlier this year, the company agreed to sell as much as 40 percent of its infrastructure unit Telxius to KKR for 1.28 billion euros, after having scrapped an IPO last year.

More from category

Verizon Selects Samsung for 5G Commercial Launch

Verizon Selects Samsung for 5G Commercial Launch

12 Jan 2018 comment

Samsung announced that it has been selected to supply Verizon with commercial 5G Fixed Wireless Access (FWA) network solutions. The two companies will begin by launching commercial 5G services in Sacramento, California in the second half of 2018.

Ericsson Signs Funding Agreements for 5G Research

Ericsson Signs Funding Agreements for 5G Research

2 Jan 2018 comment

Ericsson has signed agreements for credit facilities with the Nordic Investment Bank (NIB) for USD 220 million, maturing in 2023, and AB Svensk Exportkredit (SEK) for USD 150 million, maturing in 2025.

Huawei and NTT DOCOMO Achieve a New Breakthrough in 5G

Huawei and NTT DOCOMO Achieve a New Breakthrough in 5G

27 Dec 2017 comment

Huawei and NTT DOCOMO have completed a successful joint field trial for 5G mobile communications over a long distance with 39 GHz Millimeter Wave (mmWave) band in Yokohama, one of largest commercial areas in Japan.