Telefónica has finalized the sale of its Colombian subsidiary to Millicom for $214 million (approximately €182 million at current exchange rates). Additionally, the operation will result in a reduction of its net financial debt by approximately €1.55 billion, as reported to the National Securities Market Commission (CNMV) on Thursday night.
Having obtained the relevant regulatory approvals and met the established conditions, the company has transferred its entire 67.5% stake in the share capital of Colombia Telecomunicaciones to Millicom.
This transaction is part of Telefónica’s strategy to reduce its exposure to Latin America—a plan that has so far resulted in the telco’s exit from several countries in the region.
In addition to Colombia, the telecom provider has already finalized the sale of its subsidiaries in Argentina (to Grupo Clarín for approximately €1.19 billion), Peru (to the Argentine firm Integra Tec International for €900,000, although this subsidiary was in bankruptcy proceedings and carried a debt of €1.24 billion at the end of 2024), Uruguay (to Millicom Spain for €389 million), and Ecuador (to Millicom Spain for €329 million). However, Telefónica has yet to finalize its exits from Chile, Mexico, and Venezuela.
TWO DECADES IN COLOMBIA
Telefónica stated in a press release that, after two decades of “profound digital transformation” in Colombia, the company is leaving the country “leaving behind an indelible mark on its technological and social history.” The company maintained that during its time in the country, it was a “protagonist of milestones that set the course for connectivity, inclusion, and modernization in Colombia” by driving the expansion of broadband, fiber optics, and 4G and 5G mobile networks.
For its part, Millicom owns approximately 50% of Tigo, the second-largest operator in the country (behind Claro and ahead of Movistar). In mid-November, it received conditional approval from Colombia’s Superintendency of Industry and Commerce (SIC)—an entity similar to Spain’s National Markets and Competition Commission (CNMC)—to merge Movistar and Tigo.
However, the Colombian State still needs to sell its 32.5% stake in Colombia Telecomunicaciones to Millicom, a transaction expected to take place in April.
“At a key moment for the industry, the acquisition seeks to consolidate a second large-scale and financially viable operator, expanding access to advanced digital services and accelerating the national rollout of fiber optics and 5G. This will result in faster, more reliable connectivity and an improved customer experience,” Millicom stated in a separate press release.
It is worth noting that as part of Telefónica’s exit process from Latin America—while maintaining its presence in Brazil, which it considers a strategic market—the Spanish telecommunications group has formalized the transfer of three subsidiaries (Uruguay, Ecuador, and Colombia) to Millicom for 900 million euros, plus debt.
