Telefonica has begun exploring the sale of its Ecuador unit as part of an ongoing process to reduce its debt pile and boost its share price, according to unnamed sources cited by El Economista. Talks with potential buyers have yet to begin but Telefonica is examining market conditions and values the unit at between EUR 600 million and EUR 800 million, said the report, which mentions Millicom (Tigo) and Entel Chile as possible bidders. Telefonica Ecuador posted revenues of EUR 252 million and an OIBDA of EUR 75 million in the first 6 months of 2019.
This year alone Telefonica has reached an agreement to divest its Guatemala and El Salvador units to America Movil for a total of EUR 570 million, followed by a deal to sell its Panama, Costa Rica and Nicaragua units to Millicom for a total of EUR 1.45 billion. It also agreed to divest 11 of its data centres to investment fund Asterion for EUR 550 million and sold 658 of its telecommunications towers in Peru for USD 80 million.
Telefonica cut its debt to EUR 40.2 billion at the end of June, down around EUR 844 million since the end of 2018, but its share price fell below EUR 6 last month, its lowest level since 1997.
