After selling Nicaragua (390 M€, NFD -1%) Telefonica leaves Central America


Banc Sabadell | Telefonica (TEF) confirmed last week the sale of its subsidiary in Nicaragua for 390 M€ and so completes the sale of all its activities in Central America for a total of 2.052 M$/reduction of debt by 1.4 M€ (7.4x OIBDA 2018 vs our valuation of 6/7x for all the subsidiaries).

Telefonica controlled 60% of Telefonica Centroamérica (Panama, Nicaragua, El Salvador and Guatemala) and 100% of Costa Rica, which together represented 1.8% of sales, 1.7 % of EBITDA and 0.9% o f EV  and presented sales in the first nine months of 2018 with organic growth of +5.9%, EBITDA +15.5%  and operational CE +37.5%.

News known and expected. However, the impact is limited because of its scale and Telefonica will reduce its net financial debt by 1% with this operation.


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