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Telefonica launches up to $367 mln stake sale in China Unicom - term sheet
July 9, 2016 / 11:42 AM / a year ago

Telefonica launches up to $367 mln stake sale in China Unicom - term sheet

HONG KONG, July 9 (Reuters) - Spanish telecoms giant Telefonica SA has launched an up to $367 million stake sale in China Unicom (Hong Kong) Ltd, China’s second-largest telecommunications service provider, according to a term sheet seen by IFR on Saturday.

Telefonica is selling 361.8 million shares, or a 1.5 percent stake, in the indicative price band of between HK$7.75 ($0.9991) and HK$7.85 per share, a discount of up to 2.9 percent to the last traded price, Thomson Reuters publication IFR reported.

At the top end of the price band, Telefonica would raise roughly $367 million, the term sheet showed.

Telefonica currently owns about 600 million China Unicom shares, representing a 2.5 percent stake, according to Thomson Reuters data.

Telefonica has been selling stakes in non-core assets.

Last month, Telefonica said it was sticking to its 2016 targets despite the decision from Britain to leave the European Union, which could potentially hit its business in the country and the group’s balance sheet.

The firm is considering a partial or total sale of its telecoms masts unit Telxius and British business O2, but said it is not in a rush to make a decision on them.

$1 = 7.7573 Hong Kong dollars Reporting by Fiona Lau; Writing by Sumeet Chatterjee; Editing by Louise Heavens

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