Telxius IPO "to raise €1.4bn"
Telefónica is set to list its infrastructure arm with an expected valuation of around €3bn
Telefónica could be set to raise up to €1.4 billion through its planned public offering of recently-created infrastructure division Telxius, business daily Expansion claims.
The Spanish operator is due to register the prospectus for listing Telxius today (20 September), selling 90.9 million sales in the unit at a predicted price of between 12 euros and 15 euros each. This would value Telxius at between €3 billion and €3.7 billion.
Reports from Bloomberg claim this is lower than Telefónica was seeking for its subsidiary, which was launched in February to manage the group’s infrastructure assets. Telxius took control of around 15,000 mobile towers in Spain and other markets, plus the group’s international network of 31,000km of submarine fibre cables.
Bloomberg cites people close to the listing that said the deal faces investor concerns, driven by doubts over how to assess the division’s submarine cable assets. These make up around 60% of Telxius’s revenue and profits.