Telefónica pares down China Unicom stake

The Spanish telco turns to Asia at the weekend to raise funds to help slash its debt, executing a $365 million divestment after suffering post-Brexit UK setback.

Spanish telecommunications operator Telefónica Internacional raised HK$2.8 billion $365 million from the sale of more than half its remaining stake in China Unicom on Saturday to help reduce its debt.

The transaction was conducted through an accelerated bookbuild with Telefónica offering 362 million China Unicom shares -- or 1.5% of the Chinese telco -- at an indicative price range of HK$7.75 to $7.85 per share, according to a term sheet seen by FinanceAsia.

Telefónica launched the trade over the weekend under the advice of sole bookrunner Bank of America Merrill Lynch, with the intention of avoiding additional market risks going into next...

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