will stop trading almost 40 years after making the leap to New York

Telephone begins the procedures to complete its strategic turn with delisting from the New York Stock Exchange. The company led by Marc Murtra intends to put an end to its stock market adventure on Wall Street that began almost 40 years ago, on June 12, 1987, when it became the first Spanish company to be listed on the Big Apple stock exchanges.

The group confirms the information that was advanced Vozpópuli last September with a document deposited this Wednesday at market close with the National Securities Market Commission (CNMV) in which it argues its decision in a “detailed analysis” by the competent governing bodies, which have taken into account “the administrative burden and costs associated with keeping securities listed on the New York Stock Exchange”. The decision, the company assures, is “consistent” with the new strategic plan presented in November to place cost savings at the center of its roadmap. However, Telefónica’s management anticipates that this decision does not have any impact on the group’s clients and partners or on its commercial presence in the United States.

The movement will be articulated with the voluntary delisting of its American Depositary Shares (ADSs) -which represent its common shares-, with no intention of trading them in other securities markets. The holders of these ADSs will have the option to exchange them for shares traded on the Spanish Stock Exchange. However, Telefónica will also offer current ADS holders to continue maintaining them and will facilitate their trading in the US over-the-counter market. Likewise, Telefónica also intends to initiate a procedure to voluntarily exclude its ADSs from the Lima Stock Exchange (BVL) in Peru.

To carry out its strategy, Telefónica and its subsidiary T. Ediciones will present the corresponding forms to the SEC in the coming weeks in order to make your exclusion effective within ten days after delivery of the documentation. Once its withdrawal is complete, Telefónica guarantees the continuity of its listing on the Spanish continuous market, where it concentrates the bulk of its trading from both national and international investors.

The ‘exit operation’ finds its place in the Transform & Grow that will guide the course of the multinational until the end of the decade. In this growth plan, the company focused its attention on four large markets: Spain, Germany, United Kingdom and Brazilwith the aim of consolidating itself as a European operator of global reference, with profitable scale. This strategy has accelerated with the arrival to the presidency of Murtra, who has led the reduction of the exposure of his business to Latin America with the sale of subsidiaries in Argentina, Peru, Uruguay, Ecuador and Colombia.

Very busy day in Las Tablas

The announcement puts the finishing touch to a day of important events within the ‘teleco’. The day began with the seventh meeting of the employment regulation file (ERE) with the workers of its three large subsidiaries, which has resulted in a final offer of 4,554 departures for seven companies in Spain, which is 25% less than the 6,088 departures initially proposed. The adjustment is part of the aforementioned cost savings plan, which projects savings of 3,000 million annually until 2030. To take on this challenge, Telefónica has opted for Juan Azcue, an internal profile with extensive experience in M&A, to resolve the replacement of Laura Abasolo as head of the company’s financial management. The movement has been ratified in a council held this afternoon, where the appointment of Ernesto Gardelliano as director of strategy and control has also been approved.