Seeking Alpha

Telefonica reportedly looking to sell Czech unit

  • Bloomberg reports Telefonica (TEF) has hired Goldman and SocGen to find a buyer for Telefonica Czech Republic, in which it owns a 69% stake (currently valued at $3.6B). Shares of the Czech subsidiary are up 4.4% on European exchanges.
  • Telefonica has been rumored to be weighing a sale of the business for a while, as the European/Latin American carrier pushes works to lower its net debt (still €49.8B at the end of Q2). Like many other European carriers, the Telefonica Czech Republic has been seeing declining revenue (-7.8% Y/Y in Q2) thanks to nosediving voice/text-messaging activity.
  • Telefonica unloaded its Irish unit for €850M earlier this year, but also recently struck a deal to raise its Telecom Italia stake.
Comments (1)
  • Veritas1010
    , contributor
    Comments (1527) | Send Message
     
    This company is not worth $16+ ADR/share. Put your money to safer and more reliable purposes. This is the management that cut dividends completely after paying too much for Vivo in Brazil. (And, unless anything has changed JP Morgan will charge you just for the privelidge of owning TEF - without any dividend distribution - as this cost too was shifted to the public w/o notice).

     

    Leave this dog outside your financial house for now!
    14 Oct 2013, 01:27 PM Reply Like
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