Spanish incumbent Telefonica has received regulatory approvals to sell 40% of its stake in its units in Guatemala, El Salvador, Nicaragua and Panama for US$500m.
The transaction, agreed in late April, will be completed in the coming days after various…
Spanish incumbent Telefonica has received regulatory approvals to sell 40% of its stake in its units in Guatemala, El Salvador, Nicaragua and Panama for US$500m.
The transaction, agreed in late April, will be completed in the coming days after various conditions had been met, Telefonica said.
The structure of the deal sees Telefonica put all its assets Guatemala, El Salvador, Nicaragua and Panama into a new vehicle. It is then forming a joint venture by selling 40% of that holding group to Guatemala based conglomerate Corporacion Multi Inversiones (CMI). Telefonica will retain management control.
The transaction fee is equal to 6.5x 2012 EBITDA for the Central American businesses.
The sale is part of Telefonica’s strategy to cut its net debt from €51bn to €47bn by the end of the year.
Last month it sold O2 Ireland to Hong Kong’s Hutchison Whampoa for an initial €780m, which could rise to €850m depending on future performance of the unit.
It has reportedly mandated BofA Merrill Lynch to look at further asset sales in countries such as the Czech Republic.
