Telefonica hires Morgan Stanley to examine LatAm options, report says

13 Jan 2020

Spanish telecoms group Telefonica has selected American multinational investment bank and financial services company Morgan Stanley to lead a review of its Latin American businesses, Bloomberg reports, citing a source familiar with the matter. Options under consideration include ‘possible associations and sales of assets’ as well as an initial public offering (IPO) of the telco’s Hispanoamerica business unit.

As previously reported by TeleGeography’s CommsUpdate, in November 2019 Telefonica unveiled a five-point ‘action plan’, which CEO Jose Maria Alvarez-Pallete said will serve as a catalyst for the company’s future transformation. Going forward, the group will prioritise Spain, Brazil, the UK and Germany, and work towards an operational spin-off of its businesses in Hispanoamerica.

Announcing the plans, CEO Jose Maria Alvarez-Pallete commented: ‘Until a few years ago, our operations in Latin America were the driving force behind the company’s growth. However, the particular conditions in these markets have had an impact on the business, reducing its contribution in recent years for various reasons … With this step, we begin the review of our portfolio of assets in Hispanoamerica, with the dual objective of modulating our exposure to the region, while creating the conditions to maximise its value, both via growth, consolidation and potential corporate operations.’

Argentina, Chile, Colombia, Ecuador, Mexico, Peru, Uruguay, Venezuela, Telefonica