Telefonica Sells Irish Subsidiary

In the latest move in a broad deleveraging effort, Spanish telecom incumbent Telefonica (NYSE: TEF  ) has divested one of its European subsidiaries. The company announced that it has reached agreement to sell Telefonica Ireland to Hong Kong-based conglomerate Hutchison Whampoa Group. The potential total price is 850 million euros ($1.1 billion), 780 million euros ($1.0 billion) of which will be handed over at the closing of the transaction while 70 million euros ($92 million) will take the form of a deferred payment to be transferred when certain financial objectives are met.

Telefonica will use the proceeds of the sale to reduce its debt. The company's current deleveraging program aims to reduce total indebtedness to under 47 billion euros ($62 billion) this year. This would be down notably from the peak of 56 billion euros ($73 billion) the firm reached in 2011. Its current market capitalization is nearly 45 billion euros ($59 billion).


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2507316, ~/Articles/ArticleHandler.aspx, 9/22/2014 6:20:00 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement