Consortium of LatAm billionaires proposes Telefonica deal

21 Jan 2020

A consortium of Latin American businessmen representing multiple countries have made a provisional offer to acquire a 51% stake in Telefonica’s Hispanoamerica business, El Mundo reports. The Spanish daily notes that the offer is in the region of EUR10 billion (USD11.1 billion), and the transaction would involve Telefonica retaining a 20%-25% stake in the spun-off business. The report adds that the consortium has hired the Colombian subsidiary of Spanish law firm Cremades & Calvo Sotelo to carry out negotiations on its behalf.

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. The spun-off entity will comprise Telefonica’s operations in Argentina, Chile, Peru, Uruguay, Colombia, Mexico, Ecuador and Venezuela.

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