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Spain's Telefonica cancels Telxius IPO on weak investor interest
September 29, 2016 / 4:21 PM / a year ago

Spain's Telefonica cancels Telxius IPO on weak investor interest

MADRID (Reuters) - Spain’s Telefonica (TEF.MC) said on Thursday it had canceled a listing of Telxius IPO-TT.MC, its telecom masts business, due to weak investor demand, piling pressure on the group to find other ways to cut its 53 billion euros ($59.59 billion) of debt.

A man stands under a logo of Spain's telecom giant Telefonica at the company's headquarters in Madrid, Spain, February 26, 2016. REUTERS/Juan Medina/File Photo

Telefonica could now come under pressure from international ratings agencies and may need to find new alternatives to reduce its financial liabilities.

The company was aiming to sell up to 40 percent of Telxius and raise up to 1.5 billion euros..

    The Spanish phone company said on Thursday it would still analyze alternative options regarding the unit.

    Telefonica also said earlier this month it was looking at an IPO or a sale of a stake in its British unit O2 UK, adding it would decide in the coming weeks.

    Despite the weight of debt Telefonica has so far protected its dividends and stuck by its plans to pay out 0.75 euros a share in 2016.

    Chairman Jose Maria Alvarez-Pallete told reporters earlier this month that cash flow growth was the key to maintaining the dividend, reiterating that the company would review it by the end of the year.

    Reporting by Jesús Aguado; Editing by Angus Berwick and Alexandra Hudson

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