Telefonica to divest 40% stake in four LatAm units

30 Apr 2013

Spanish telecoms giant Telefonica has announced that it has inked an agreement with Corporacion Multi Inversiones (CMI) under which it will divest a 40% stake in its subsidiaries in El Salvador, Guatemala, Nicaragua, and Panama. Telefonica has said that the deal, which is valued at USD500 million, remains subject to obtaining any necessary regulatory approvals, while also noting that it includes a USD72 million payment, to be determined by ‘the evolution and the operational performance of the aforementioned assets in the coming years’. In a statement announcing the development, Telefonica noted that it fell in line with the group’s ‘policy of proactive management of its asset portfolio and the initiatives to increase the company’s financial flexibility’.