Telefónica will increase capital to a maximum of 874 million to pay dividend

Telefónica will raise a maximum of EUR 873.62 million (3.22% of its capital) at the rate of EUR 0.15 gross for 2021 to cope with the payment of the second tranche of its flexible dividend (scrip dividend).

As detailed to the National Securities Markets Commission this Wednesday (cnmv), the operator’s board of directors has today agreed to increase, which will serve to pay this second installment of dividend for 2021.

In accordance with what was approved, shareholders who wish to receive their remuneration in cash can sell their free allotment rights to the company at a fixed gross value of EUR 0.148 per right.

For those who opt for remuneration in titles, 31 free rights would be necessary to receive a new share of the company.

to make it happen capital increaseThe company will issue a maximum of 181.92 million shares, equivalent to 3.22% of its current capital, equivalent to 5,639.77 million shares, with a reference price of EUR 4.738 per share.

Therefore, this capital increase will be less than the previous 197.9 million made by the company in December 2021, corresponding to 3.72% of its capital to cover the past payment of flexible dividend.

It is expected that there will be a trading period of free allotment rights from 1st to 14th June and P.I. on 9th.Link to request compensation In cash, which will be paid on June 16. In addition, it is expected that the listing of new shares will start from June 24.

Following this increase, Telefónica will return to an effective dividend, which will be 0.3 euros per share in 2022 and will be paid in two phases (December and June 2023) approved by the Telefónica shareholders’ meeting.