Telefonica has agreed to sell 40% of its investment in Guatemala, El Salvador, Nicaragua and Panama for US$500m, equalling 6.5x EBITDA of the units.
The Spanish incumbent plans to set up a holding joint venture for its assets in the four Central…
Telefonica has agreed to sell 40% of its investment in Guatemala, El Salvador, Nicaragua and Panama for US$500m, equalling 6.5x EBITDA of the units.
The Spanish incumbent plans to set up a holding joint venture for its assets in the four Central American countries. Guatemala based conglomerate Corporacion Multi Inversiones (CMI) will acquire 40% in the JV.
Telefonica, which has taken a number of measures to reduce its debt over the past year, noted that it will keep control of the businesses with no impact on consolidated group results.
According to a Telefonica spokesperson closing is expected during the second half of 2013. He noted that the transaction required approval from several regulators in different jurisdictions.