The evolution of Telefónica’s Telxius
From rising debt and infraco rumours to tower sales, merger breakdowns and the upcoming IPO
On September 20, Telefonica announced their intention to raise up to €1.5bn from the listing of 40% of their infrastructure subsidiary, Telxius, With the indicative price range for each share set between €12 and €15, this puts Telxius’ entire market capitalisation between €3bn and €3.75bn.
The past 12 months have been an eventful period for Spanish operator, Telefónica. After reaching an agreement with Hutchison in March last year to sell their UK O2 business to help alleviate debt, the merger was blocked by the European Commission and their “plan B” of raising capital from the monetisation of their towers and subsea cabling sprung into action.