Telefónica, Madrid. Credit score: JJFarq, Shutterstock.
Telefónica has agreed to promote its Ecuadorian subsidiary to Millicom Spain for €330 million, persevering with its strategic retreat from Latin America beneath chairman Marc Murtra.
The sale of Otecel, which operates as Movistar Ecuador and holds 28 per cent of the native cell market with 5 million prospects, was introduced late Friday and is topic to regulatory approval.
In an announcement, Telefónica stated the deal is a part of its plan “to optimise its portfolio and progressively scale back its publicity in Latin America, specializing in key markets and producing sustainable worth” (Cited by El Cronista).
Telefónica’s €2.3 billion Latin American exit plan
Since Murtra turned president, Telefónica has divested €2.33 billion in Latin American belongings, together with:
- Argentina: €1.19 billion (Grupo Clarín)
- Peru: €900,000 plus €1.2 billion assumed debt
- Uruguay: €389 million (Millicom)
- Colombia: €368 million (Millicom)
- Ecuador: €330 million (Millicom)
Millicom CEO Marcelo Benítez stated the deal displays “long-term confidence in Latin America,” calling Ecuador “a dynamic and rising digital market inside a secure, dollarised economic system.”
Spanish banks stay cautious. Renta 4 maintained a “maintain” advice, noting the deal may pave the best way for extra exits, comparable to Chile or Mexico. Bankinter’s Elena Fernández-Trapiella stated Latin America was “a burden” with decrease revenue margins.
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