Telefónica announced sale of 10 percent stake in its private equity-backed telecommunications infrastructure arm Telxius to existing shareholder Pontegadea for €378.8 million ($440.3 million).
The sale has been structured via Telefónica’s subsidiary, Pontel Participaciones, which owns 60% of Telxius’ capital stock. Pontegadea owns 16.65% of Pontel and Telefónica the remaining 83.35%. After the transaction, Telefónica will maintain a majority stake and retain operational control of Telxius. The unit will continue to be consolidated into its accounts.
Additionally, Telefónica, Pontegadea and Pontel have entered into a shareholders’ agreement that regulates the relationship of Telefónica and Pontegadea as shareholders in Pontel.
This transaction is part of the Telefónica Group’s asset portfolio management policy, based on a strategy of value creation, optimization of the return on capital and strategic positioning. It also complements the objective of organically reducing debt and strengthening the balance sheet in a growing cash flow scenario, which allows us to maintain a sustainable shareholder remuneration.