9/28/2016 12:11:32 PM
O2 IPO set for early 2017, says Spanish press
Telefonica is preparing its O2 initial public offering (IPO) for early 2017, the Spanish paper El Economista has reported.
According to publication O2’s Spanish parent company has hired Barclays, UBS and Morgan Stanley to advise on the floatation. The paper added that a fourth financial institution would also be involved with the identity to be revealed in the coming days. The Spanish telecoms giant will trust public relations for the IPO of its subsidiary to Finsbury.
The paper reports that analysts expect Telefonica UK to sell around 40% of the business valued at around £10bn and hope to raise £4bn this way. The Spanish firm is expected to use a significant portion of this on its substantial debts.
Long term plan
O2 has been known to have been preparing for an IPO for some time now. Ever since the deal for Three’s owners CK Hutchison to buy O2 from Telefonica was rejected by the European Commission the business has been searching for other ways to raise funds from its UK arm.
The operator recently said goodbye to long serving CEO Ronan Dunne who departed for Verizon and was replaced by CFO Mark Evans.