DIVIDENDO TELEFÓNICA – Two out of three shareholders prefer the dividend in Telefónica shares

Shareholders holding 63.01% of the free allotment rights of Telefónica have chosen to receive in shares the first tranche of the flexible dividend (scrip) proposed by the company to the calendar year 2020, while the remaining 36.99% has opted to receive the 0.20 euros cash. The operator distributes the equivalent of 1,000 million euros among its partners with this payment, which will be completed with another 0.2 euros for each title from next November.

With the payment in shares, Telefónica saves the disbursement of the dividend and pays with a capital increase. The company has communicated this Friday to the CNMV the result of the trading period of the free allocation rights corresponding to the first capital increase charged to reserves related to shareholder remuneration through ‘scrip dividend’, which ended on July 1.

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Specifically, the shareholders holding 36.99% of the free allocation rights have accepted the irrevocable commitment to purchase rights assumed by Telefónica, representing a gross amount paid by the company of more than 370.7 million euros. The company has renounced the rights thus acquired, which have been amortized.

Capital increase

For his part, the remaining 63.01% have chosen to receive the dividend in shares, which means the issuance of just over 136.3 million shares, corresponding to a 2.63% of the share capital. Given that the nominal value of each security is one euro, the amount of the capital increase amounts to more than 136.3 million euros. As a result of this increase, the figure for Telefónica’s share capital has been set at 5,328,437,672 euros, divided into a total of 5,328,437,672 shares.

In this regard, the group adds that the new shares are expected to be admitted to trading on the four Spanish Stock Exchanges and can be traded through the Spanish Stock Market Interconnection System next July 16, 2020, so that your ordinary recruitment in Spain begins on July 17, 2020. Likewise, the admission to listing of the new shares will also be requested in the remaining foreign Stock Exchanges in which Telefónica is listed.

The On June 12, the General Shareholders’ Meeting of Telefónica approved the proposal of the board of directors for the payment of the second tranche of the 2019 dividend (0.2 euros, to be paid in June 2020) and the first tranche of the 2020 dividend (0.2 euros, to be paid in December 2020) through the voluntary flexible dividend modality.