Telefónica De Argentina To Pay Shareholders

Telefónica de Argentina, the Argentine subsidiary of the Spanish telecoms group, has agreed to pay its shareholders for the first time since the country’s financial crisis in 2001. However, the company will not be paying shareholders a dividend but rather a nominal refund of contributed capital. Under the proposed scheme, Telefónica will pay 60 cents (local currency) for every 1 peso share, as well as four shares of 10 cents each. The result will be a reduction in the company’s share capital by 60%. The payout will total around $340 million. The proposal will be put forward to shareholders at an extraordinary general meeting to be held on September 7.