Telefonica sells LatAm assets for USD 500 mln

News General Latin America and the Caribbean 30 APR 2013
Telefonica sells LatAm assets for USD 500 mln

Telefonica has agreed to sell 40 percent of its assets in El Salvador, Guatemala, Nicaragua and Panama to Corporacion Multi Inversiones (CMI). Telefonica will maintain control of operations in El Salvador, Guatemala, Nicaragua, and Panama, which will be merged into a joint venture. The value of the sale – which is subject to obtaining the necessary regulatory approvals – totals USD 500 million.

The operation also includes the payment of an additional amount of up to USD 72 million, which will be determined by the evolution and the operational performance of the aforementioned assets in the coming years. The implied multiple for the total amount of the transaction means 6.5 times EBITDA 2012 of the companies involved in the operation.

The transaction is in line with Telefonica’s strategy of proactive management of its asset portfolio and the initiatives to increase the company’s financial flexibility, the company said.

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General

Companies:

Telefonica

Regions:

Latin America and the Caribbean

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Shareholders & subsidiaries, Wholesale, M&A buyouts & divestments

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