Friday, December 3

The keys to the dividend that Telefónica will pay in December

Telefónica will pay a dividend of 0.15 euros to its shareholders on December 17, as notified by the company to the National Securities Market Commission.

This dividend corresponds to the first tranche of shareholder remuneration for 2021 and will be paid under the modality of ‘scrip dividend’ (or flexible dividend).

The company will pay it through a capital increase charged to reserves approved by the General Shareholders’ Meeting on April 23.

What is Telefónica’s flexible dividend?

Under that flexible dividend, shareholders have three options. First, they can choose to collect the dividend in shares. In this case, the ratio is 26 shares or rights to receive one new share.

In the case of preferring to collect the dividend in cash, they must sell the rights to their shares to the company itself or on the market, where they will be listed as of December 1.

If the option chosen is to sell the rights to Telefónica itself, the price would be 0.148 euros per right, although this possibility will only be available to those investors who appear as shareholders on December 2, 2021, for which they should have bought their shares at the latest on November 30 (as long as this operation is registered no later than December 2).

Telefónica’s flexible dividend calendar

As for the key dates that investors should take into account, they are the following:

November 30, 2021: date of publication of the announcement of the capital increase in the Official Gazette of the Mercantile Registry. Last day of trading of Telefónica shares with the right to participate in the capital increase.

December 1, 2021: Beginning of the trading period for the free allocation rights. Telefónica’s share is listed “ex-coupon”.

December 2, 2021: Reference date for the allocation of free allocation rights.

December 9, 2021: End of the period to request compensation in cash (sale of rights to Telefónica).

December 15, 2021: End of the trading period for the free allocation rights. Acquisition by Telefónica of the free allocation rights of those shareholders who have requested the purchase of these by the company.

December 17, 2021: Cash payment to shareholders who have requested cash compensation (sale of rights to Telefónica). Waiver by Telefónica of the rights acquired by virtue of the purchase commitment. Closing of the paid-up capital increase. On that day, Telefónica communicates to the CNMV how many shareholders have opted for cash and how many for shares. Therefore, it will be known how much the extension will be to face the scrip, that is, how many new shares will reach the market.

December 18-23, 2021: Procedures for admission to trading of the new shares.

December 27, 2021: Estimated date of commencement of trading of the new shares.

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