Colombian govt poised to renew Telefonica stake sale

22 Jul 2020

The Colombian government is set to intensify its attempt to sell its 32.5% stake in Telefonica Colombia (Movistar) – two years after its initial sale attempt floundered. According to La Informacion, the government will seek to exploit the recently approved Legislative Decree No. 811, which has opened the door to the privatisation of public companies, or companies in which the state has a significant participation.

The government’s commitment to selling the stake is likely to benefit Telefonica too; the Spanish giant is committed to offloading all its business in Latin America, except Telefonica Brasil. Any interested bidders are now theoretically able to acquire both stakes and gain full control of the telco.

As previously reported by TeleGeography’s CommsUpdate, on 13 July 2018 the Ministry of Finance issuing Decree 1215, setting the price of its 32.5% shareholding at COP2.3 trillion (USD800 million at that time, USD631 million using the current exchange rate). A total of 1.108 billion shares were to be sold via a two-step public offering, with the price set at COP2,075 per share, only for the process to be derailed by a lack of interest.

Colombia, Telefonica Colombia (Movistar)