Renta 4 | Telefónica Perú entered into an agreement in July 2023 with KKR and Entel Perú to give both entities a 54% and 10% stake, respectively, in Pangea, the wholesale fibre company in Peru. Telefónica would retain the remaining 36%.
The transaction was completed at around 20x EBITDA and was expected to reduce net financial debt by approximately €200 million.
However, Telefónica Peru announced on Friday that due to the breach of certain closing conditions stipulated in the initial agreement, Telefónica HispAm has decided to formally document the termination.
Assessment: Negative news as the monetisation of fibre assets, which Telefónica is managing to close at attractive valuations and financial conditions, contributes to value these assets, reduce debt, limit capex and reduce exposure to certain countries or geographic areas, key attributes in Telefónica’s strategy. P.O. €4.60. HOLD.
