Telefónica has reached an agreement to sell its subsidiary in Argentina to Telecom Argentinacompany participated by the Clarín Group, for an amount of US $ 1,245 million (More than S/4,577 millionat the current exchange rate), as reported on Monday to the Spanish regulator, the National Securities Market Commission (CNMV).
The operation, which took Argentine mobile telephonethrough its TLH Holdco subsidiary. With this transaction, Telecom Argentina acquires 99,999625% of the social capital of mobile telephone Argentina.
This is the first major corporate operation under the direction of Marc Murtra, who assumed the presidency of Telefónica On January 18 in replacement of José María Álvarez-Pallete. This divestment is aligned with the strategy that the company defined in 2019 to reduce its presence in the Latin America region (Hispam), With the exception of Brazil, and focus on its main markets: Spain, Germany, United Kingdom and Brazil.
According to the latest accounts presented by Telefónica, the group’s revenues between January and September 2024 amounted to 30,418 million euros (S/116,415 million), of which 21% came from the Hispam region. However, the gross exploitation result (EBITDA) in this unit fell 6.7%, standing at 1,159 million euros (S/4,435 million).
Despite its divestment strategy in the region, Telefónica maintains presence in Latin America. At the beginning of February, he announced an investment of US $ 500 million (s/1,825 million) in Venezuela in the next two years to display 5G technology and improve its 4G/LTE network.
Telefónica: How many subsidiaries have you sold so far?
The sale of Argentine mobile telephone It joins a series of divestments made by the company in Hispam since 2019. In that year, the operator sold its subsidiaries in Guatemala and El Salvador to América Móvil for US $ 648 million, and its subsidiary in Nicaragua to Millicom for US $ 437 million. Subsequently, in 2020, he specified the sale of its operation in Costa Rica to Liberty Latin America for US $ 500 million.
These divestments have been key to reducing the company’s debt, a priority established during the management of Álvarez-Pallete and that seems to continue under the direction of Murtra.
Source: Larepublica
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