Telefónica planned to raise up to $1.68 billion with the IPO
Spanish telecommunications giant Telefónica has abandoned plans to launch an initial public offering of its infrastructure unit Telxius.
“Telefónica and the joint global coordinators have decided to abandon the offering, considering inadequate the valuation of the company, Telxius, implicit in the purchase orders received,” the telco said in a statement.
The Spanish operator said last month it hoped to raise up to 1.5 billion euros ($1.68 billion) from the IPO. It aimed to sell a 36.36% stake in Telxius, with an over-allotment option that would increase it to 40%.
In February, Telefónica established Telxius to manage certain infrastructure assets of the telecommunications group.
Telxius currently manages approximately 16,000 telecommunication towers in Spain and other countries, as well as the Telefónica Group´s international network of 31,000 kilometers of submarine fiber optic cable, including SAM-1, a submarine cable that connects the United States with Central America and South America.
Telefonica said it had decided to create this new company in a move to monetize its assets and obtain new resources to reduce debt and boost investments.
Telefónica launches Open Cloud and Cloud Server in three Latin American markets
In related news, Telefónica Business Solutions and Chinese vendor Huawei have launched the Open Cloud and Cloud Server services in Chile, Brazil and Mexico.
Open Cloud is a public cloud service based on OpenStack technology and hosted in Telefónica’s data centers in Chile, Brazil and Mexico. Customers in these markets will have access to a broad range of services ranging from computing, storage, networks and databases to more advanced application development, security and analysis services.
Telefónica’s Cloud Server service is already commercially available in those markets, running on Huawei’s platform. Cloud Server makes it possible to deploy a cloud server through a quick and easy process.
Both firms confirmed that the next countries in which these services will be launched are Peru, Argentina and the United States.
“By combining Huawei ‘s long-term and sustained investment in global information and communications technology, with Telefónica‘s leading B2B market development capabilities, both companies aim to transform the traditional industries by providing high-quality, innovative, and industry-oriented cloud services, to enterprises and SME customers,” Yelai Zheng, president of Huawei IT Product Line, said. “Cloud is a key strategic new business for Huawei, and we are committed to grow more and more our investment in this area.”
