(Updates with new details of the transaction)
Madrid, Jan 23 (EFE) .- Telefonica confirmed today in a statement to the Comisión Nacional del Mercado de Valores (CNMV) -the Spanish securities regulator – negotiating to sell its British subsidiary O2 to Hong Kong Hutchison Whampoa group for up to 13,500 million euros (about $ 15,300)
For this, the Spanish Telefónica Group and Hong Kong Hutchison, owner of mobile operator Three,. have decided to enter into exclusive negotiations within several weeks will be extended, allowing the contracts are finalized and perform the “due diligence” (research of a previous company to sign a contract) on O2.
The operation indicates Telefónica, will be carried out with an initial payment of 9,250 million pounds (12,200 million euros), which would be paid to the closing of the transaction, as well as an additional payment of 1,000 million pounds (1,300 million euros) if certain conditions are met.
The binding of O2 and Three will result in the largest mobile operator in the UK and Hutchison operation comes after BT (fixed) rejects buy the subsidiary of Telefónica and decant by acquiring Everything Everiwhare (EE), owned by Deutsche Telekom and Orange
Telefónica is present in major markets such as Germany, where it has acquired E-Plus.; Brazil, which has bought GVT, and Spain, where he conducted a “commercial and technological revolution,” the company said.
Sources close to the negotiations said that with this operation, the Spanish group says its growth sustainable in the long term and ensures and continues its policy of shareholder return.
It also improves its financial flexibility, allowing it to address the challenges of the telecommunications market, the report said.
Between June 2012, when the debt of Telefónica exceeded 58,000 million euros (65,000 million), and June 2014, the group has reduced its debt by about 17,000 million euros.
This morning, the Hutchison Whampoa group of companies already announced the agreement to the Stock Exchange of Hong Kong.
Hutchison Whampoa, which Telefónica sold in June 2013 its subsidiary in Ireland for 850 million euros (960 million dollars at current exchange) is a business conglomerate based in Hong Kong and dedicated to sectors such as ports, logistics, energy, telecommunications, hotels, retail and infrastructure.
It is chaired by the tycoon Li Ka-shing, considered the richest man in Asia and 14th in the world, with an estimated 35,000 million (31,000 million euros), according to the list of billionaires Forbes fortune. EFE
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