Telefónica has agreed with Millicom to sell all the shares it holds in Colombia Telecomunicaciones, representing 67.5% of its share capital, for approximately $400 million, as reported by the company to the CNMV. This represents an equity value of more than seven times EBITDA and the deconsolidation of debt of nearly €1.2 billion.
“This operation is part of the asset portfolio management policy of the Telefónica Group and is aligned with its strategy to gradually reduce exposure to Latin America,” explained the Spanish company. Specifically, Telefónica’s CEO, Marc Murtra, explained this Wednesday that one of the priority objectives of the new strategy is to divest from Latin American assets and subsidiaries, except for Vivo Brazil.
This has already translated into the sale of its subsidiary in Argentina for about €1.2 billion and the filing for bankruptcy in Peru, along with the possibility that the company may divest from its subsidiaries in Uruguay and Mexico. The company recently announced that it will undertake a strategic review of its businesses in light of current geopolitical changes, although the new roadmap will be made public in the second half of the year.
