Spain’s Telefonica has floated a tender offer, through its subsidiary unit Inversiones Telefonica Internacional Holding Ltd. to buy out all outstanding shares of Telefonica Chile (CTC) that that it does not already own, totaling to 55.1 percent of the outstanding shares.

The deal valued of around $985 million, will be marked successful only if at the end of the process Telefonica manages to own a minimum of 75 percent stake in the company.

Before the transaction takes off, CTC''s shareholders will have to approve a change in CTC's bylaws in so as to remove the current 45 percent ownership restriction.

Spurred by the acquisition talks, Telefonica Chile’s stocks closed sharply higher at 529.00/ 529.50 per dollar.