Tuesday, March 24, 2015

Telefonica closes agreement with Hutchison to sell O2 – Reuters

MADRID (Reuters) – Telefonica announced Tuesday definitive agreement to sell its UK subsidiary Hutchison cellular O2 amounting to 10,250 million pounds, in an operation that accelerates the consolidation of European telecommunications market

This amount is divided into a first payment of 9,250 million pounds and an additional payment of 1,000 million once O2 reaches a figure agreed cumulative cash flow.

The closing of the transaction, once obtained the approval of the relevant authorities, is expected in 2016, and Telefonica said it will use the funds to place their leverage by below 2.35 times.

With the operation, Hutchison will have 22 million customers and position itself as the largest mobile operator in the UK, to unite the business to Three, where it already operates.

The operator will focus on its strategic markets of Spain, Germany and Brazil.

(Reporting by Andres Gonzalez Edited by Carlos Ruano)

© Thomson Reuters 2015 All rights reserved.

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