Telefónica Deutschland Announces Intent to Delist; Shareholders Offered EUR 2.35 Per Share

Telefónica Deutschland Holding AG disclosed its plan to withdraw from the stock market, a process referred to as delisting, after entering an agreement with Telefónica Local Services GmbH. The parent company, Telefónica, S.A., indirectly holds over 94% of the shares through Telefónica Local Services GmbH and other holdings. The bid involves an acquisition offer to buy out remaining shareholders at EUR 2.35 per share, aligning with the statutory minimum price regulations.

In light of the delisting move, management believes this decision best serves the company's strategic and financial interests, citing the diminishing significance of its stock market listing. A delisting acquisition offer will be presented to shareholders, supporting the process under legal obligations and the condition of reviewing the forthcoming offer document. Post-delisting, the company's shares will not trade on any regulated market domestically or internationally.

Additionally, the company's Annual General Meeting (AGM) is postponed to a date post-offer settlement, hinted to be no sooner than mid-June 2024. Noteworthy is the shift in dividend policy post-delisting, with indications that distributions beyond the 2023 financial year may cease, aligning with the preferences of the Bidder and its parent company, Telefónica, S.A.