Telefonica To Sell 40% Stake In Telxius Telecom To KKR Entity For €1.28 Bln

(RTTNews) - Spanish telecom group Telefonica SA (TDE.L, TEF) Tuesday said it has reached an agreement for the sale of up to 40% of the total share capital of Telxius Telecom, S.A.U. to Taurus Bidco S.à.r.l., an entity managed by Kohlberg Kravis Roberts & Co. L.P. The deal price is 1.275 billion euros in total or 12.75 euros per share.

The agreement includes a Purchase Agreement for the sale 24.8% of the total capital stock of Telxius Telecom for a price of 790.5 million euros, as well as stock options over 15.2% of the total share capital for a price of at least 484.5 million euros.

These options correspond to a call option exercisable by KKR and to a put option exercisable by Telefónica upon maturity of the call option.

The closing is subject to obtaining the corresponding regulatory approvals.

The company said the transaction implies an Enterprise Value of 3.678 billion euros including debt, and an Equity Value of 3.188 billion euros or 12.75 per share, which confirms the valuation established by Telefónica in the prospectus for the offering of shares registered on September 20, 2016.

Telefonica said the agreement will have no impact on its consolidated results as it consists on the sale of a minority stake, maintaining Telefónica the control over Telxius.

The sale is part of Telefónica Group's asset portfolio management policy, based on a strategy of value creation and strategic positioning.