Telecom giant Telefonica is preparing an initial public offering (IPO) of German unit Telefonica Deutschland Holding, which is expected to take place in the fourth quarter, the Spanish group announced in a press release on Wednesday morning.

Telefonica has not yet determined the percentage of equity that will be offered but has asserted that it will remain the majority shareholder of the German unit.

Telefonica Deutschland Holding, operator of the O2 brand, will be listed on the Frankfurt Stock Exchange.

"The rise of Telefónica Deutschland is based on the successful implementation of our data services strategy, our strong brand portfolio and a very high customer satisfaction. Moreover, we operate in Germany, which is one of the strongest economies in Europe and one of the largest telecommunications markets in Europe," said Telefonica Deutschland Chief Executive Officer René Schuster.

"We are convinced that an IPO will enable us to raise our profile further, and to continue the successful growth story of Telefónica Deutschland in Germany in the long term."

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