The cash offer is said to be a 37.6% premium to the German unit’s closing price on Monday. The unit has a market value of around €5 billion.
Telefonica Deutschland is one of the leading integrated telecommunications providers in Germany, serving more than 44 million mobile accesses and 2.3 million broadband customers.
The Spanish parent company currently owns around 71.81% of Telefonica Deutschland.
The offer, Telefonica says, reinforces its strategy on its core geographies (Spain, Brazil, Germany and the UK) and its strong commitment to the German market, representing what it calls one of the most “attractive and stable telecom markets in Europe”.
Bank of America and JP Morgan are acting as financial advisors for the offer.
“The Offer will be conducted exclusively under the laws of the Federal Republic of Germany and certain applicable provisions of the U.S. securities laws,” Telefonica said in a release.
Any contract concluded on the basis of the Offer will be exclusively governed by the laws of the Federal Republic of Germany and is to be interpreted in accordance with such laws.
