Telefónica to Divest Stake in Colombia Telecom to Millicom for $400 Million

Telefónica is selling its 67.5% stake in Colombia Telecom to Millicom for $400 million as part of its strategy to reduce Latin American exposure. The transaction is pending regulatory approval. Telefónica operates widely in telecommunications, with a strong presence in Europe and Latin America.

Telefónica, through its Hispanoamérica subsidiary, has announced the sale of its 67.5% stake in Colombia Telecomunicaciones S.A. E.S.P. BIC to Millicom Spain, S.L. for $400 million. This divestment is part of Telefónica’s broader strategy to minimize its exposure in the Latin American market, aligning with its approach to asset portfolio management. The transaction is subject to regulatory approvals in Colombia.

Telefónica is a prominent telecommunications firm operating in various sectors, including fixed and mobile telephony, broadband, and digital services. The company is recognized for its substantial influence in both European and Latin American markets and is committed to enhancing connectivity and facilitating digital transformation in these regions.

As of this report, Telefónica’s year-to-date price performance stands at 8.55%, with an average trading volume of approximately 1,590,084. The technical sentiment consensus rating for its stock is currently categorized as a Strong Sell, with a market capitalization of €24.02 billion. Detailed analytics regarding Telefónica’s stock can be accessed on TipRanks’ Stock Analysis page.

In summary, Telefónica’s decision to divest its stake in Colombia Telecom highlights its strategic intent to reduce exposure in Latin America while aligning with its asset management policies. The sale to Millicom for $400 million represents a significant move as the company navigates its operations within the telecommunications sector.

Original Source: www.tipranks.com