Telefonica has once again begun working on the planned IPO of its infrastructure division Telxius now that the impact of Brexit on markets appears to have died down, according to unnamed sources cited by Bloomberg. Banks working on the IPO could start meetings with investors as early as next week, allowing Telefonica to list the company on the Madrid stock exchange by the end of September, said the sources. In June the company said it was delaying its already well advanced plans to list its infrastructure unit due to market instability following the UK vote to leave the EU.
Telefonica is looking to raise as much as EUR 1.5 billion from the IPO with a view to reducing a debt that currently stands at EUR 52.6 billion. Ratings agency Moody’s recently indicated that the company must cut the figure significantly by the end of the year in order to avoid “very negative” repercussions for its credit rating.
Telxius was set up in February to manage Telefonica’s global infrastructure, including around 16,000 towers in Spain and other countries, as well as the company’s 31,000 km of fibre cable, including the SAM-1 cable linking the US and Latin America.