Telefonica Deutschland to raise $4.7 billion for E-Plus buy
BERLIN (Reuters) - Telefonica Deutschland said it planned to raise 3.62 billion euros (3 billion pounds) via a capital increase to partially finance its acquisition of the German business of Dutch peer KPN.
Telefonica Deutschland is buying the business, which operates under the E-Plus brand, for 8.6 billion euros to create Germany's largest telecoms operator in terms of customers.
It said late on Monday that it would issue 1.16 billion new shares at a subscription price of 3.24 euros per share, to be offered to current shareholders at a ratio of 1:1.
Telefonica, which indirectly holds almost 77 percent of Telefonica Deutschland, will exercise its subscription rights in full, the German company said.
Any shares not taken up by shareholders will be taken up by the consortium banks underwriting the offer.
The subscription period will start on Sept. 10 and run until Sept. 23.
Telefonica Deutschland' shares closed at 5.80 euros apiece on Monday. It said the offer price was equivalent to a discount of 28.3 percent to the theoretical ex-rights price.
The bank consortium is headed by joint global coordinators Citigroup Inc, HSBC Trinkaus, Morgan Stanley and UBS AG. Joint bookrunners are Bank of America Merrill Lynch and JPMorgan Chase & Co, while the joint co-leads are Banco Santander SA, Bayerische Landesbank, BBVA, BNP Paribas SA, Commerzbank, Mediobanca, Societe Generale and UniCredit.
Telefonica Deutschland is separately issuing a further 740.66 million new shares as the share-based component of the purchase price.
(1 US dollar = 0.7754 euro)
(Reporting by Victoria Bryan; Editing by Lisa Shumaker)
