AT&T, Millicom, LLA, Entel interested in Telefonica assets

28 Nov 2018

AT&T, Millicom International Cellular (MIC), Liberty Latin America (LLA) and Chilean telco Entel have all been named as interested parties as Spanish telecoms giant Telefonica explores the divestment of its Mexican and Central American subsidiaries, El Economista reports. The article notes that MIC chief financial officer Tim Pennington confirmed his firm’s interest at a recent Morgan Stanley conference, although MIC’s existing Central American footprint may lead to competition concerns in certain markets, potentially restricting the assets it is able to acquire.

As per El Economista’s initial report in September, 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.