Gleiss Lutz advises bidder Telefónica on public delisting offer

A Gleiss Lutz team has advised the Spanish listed company Telefónica S.A. in connection with the public delisting offer to all shareholders of Telefónica Deutschland Holding AG ("Telefónica Deutschland").

Telefónica Local Services GmbH, a wholly owned subsidiary of Telefónica S.A., announced today that it intends to launch a voluntary public delisting tender offer at a price of EUR 2.35 in cash per Telefónica Deutschland share. Telefónica S.A. currently holds (directly and indirectly) approximately 94.35% of the shares in Telefónica Deutschland. The offer therefore aims to acquire the remaining 5.65% of Telefónica Deutschland's registered shares. At a price of EUR 2.35 per share, Telefónica Deutschland is valued at approximately EUR 7 billion and the outstanding shares at almost EUR 400 million. Telefónica Local Services GmbH has today also entered into an agreement with Telefónica Deutschland under which Telefónica Deutschland has undertaken to support a delisting of Telefónica Deutschland and to apply for the revocation of the admission of Telefónica Deutschland's shares to trading on the regulated market of the Frankfurt Stock Exchange.

Telefónica Deutschland is headquartered in Munich. The shares of Telefónica Deutschland are traded on the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt am Main. The Telefónica Deutschland Group employs around 7,500 people and generated revenues of more than EUR 8,614 billion in 2023.

Telefónica S.A. is one of the largest telecommunications service providers in the world. The company offers fixed and mobile connectivity as well as a wide range of digital services for private and business customers. With more than 383 million customers, Telefónica operates in Europe and Latin America. In 2023, the Telefónica Group had a total turnover of over EUR 39.9 billion.

Gleiss Lutz has a leading public takeover practice and is regularly involved in high-profile transactions. This includes friendly and hostile takeovers and advising bidders, management or supervisory boards of the target company or investment banks. In the last 15 months, Gleiss Lutz teams have, for example, advised the supervisory board of Software AG in connection with the delisting tender offer (and previously the public tender offer) of Silver Lake, Telefónica on the partial tender offer to the shareholders of Telefónica Deutschland, the takeover committee of Vitesco Technologies AG in connection with the public tender offer of Schaeffler, the management board of SYNLAB AG in connection with the public tender offer of Cinven and the main shareholder of va-Q-tec AG in connection with the takeover offer of EQT.

The following Gleiss Lutz team has advised Telefónica S.A: Dr. Christian Cascante (partner, Frankfurt), Dr. Jochen Tyrolt (partner, Stuttgart, both Corporate/M&A, both lead), Dr. Markus Martin (counsel), Dr. Julius-Vincent Ritz (both Corporate/M&A, Stuttgart), Steffen Carl (partner), Florian Schorn (both Corporate, Munich), Dr. Jacob von Andreae (partner), Lennart Förster (both Foreign Investment Law, Düsseldorf), Dr. Stefan Mayer (partner), Dr. Leonhard Kornwachs (both Tax, Frankfurt), Oliver Wolf, Dr. Bosede Staudenmayer, Dr. Valentin Zemmrich (all Corporate/M&A, all Stuttgart), Dr. Doris-Maria Schuster (partner, Hamburg), Julia Herzberg (counsel, both Employment, Düsseldorf).

A team from Uría Menéndez advised on Spanish law issues, while Davis Polk & Wardwell advised on US law.