Spanish telecoms giant Telefonica is considering the total or partial divestment of its Mexican and Central American subsidiaries, El Economista reports, as it seeks to reduce its debt ‘in an accelerated manner’. Sources familiar with the situation have informed the Spanish business site that the sales plans have been under consideration for ‘many months’ and negotiations are now at an ‘advanced’ stage. As such, a sale agreement could be announced as early as next month.
As per the report, Telefonica Mexico is likely to be valued at between EUR1.1 billion (USD1.3 billion) and EUR1.9 billion, while the telco’s combined Central American units are valued at around EUR760 million. Telefonica de Costa Rica is wholly owned by the Spanish parent, while Telefonica holds a 60% stake in its businesses in Guatemala, El Salvador, Nicaragua and Panama. The outstanding 40% stake in each company has been held by Guatemala-based Corporacion Multi Inversiones (CMI) since August 2013.