Latin American Investors Seek to Control Telefonica's Hispanoamerica Unit
January 20 2020 - 8:04AM
Dow Jones News
By Carlos Lopez Perea
A group of investors from Latin America have launched an offer
to control a 51% stake in Telefonica SA (TEF.MC)'s Hispanoamerica
unit, in a deal valued at "at least EUR10 billion," according to a
report by El Mundo on Monday.
The offer entails the creation of a Latin American holding
company to integrate Telefonica's Hispanoamerica unit, with local
shareholders controlling a 51% interest, and Telefonica owning
between 20% and 25%, El Mundo reported.
According to the newspaper, negotiations are currently at an
early stage.
The transaction, which would include a stock flotation, wouldn't
force Telefonica out of the region, where its presence is strategic
not only for the company but also for the state, the newspaper
added.
Telefonica wasn't immediately available for comment.
At the end of November, the Spanish company announced a plan to
create a unit bringing together Telefonica's businesses in the
Latin American countries where it currently operates, excluding
Brazil. With this move, the company said it was attempting to
"attract investors and capture synergies," pointing to a potential
sale of its business in the region.
"Until a few years ago, our operations in Latin America were the
driving force behind the company's growth. However, the particular
conditions in these markets have had an impact on the business,
reducing its contribution in recent years for various reasons,
despite the enormous efforts of our local teams which have always
shown a strong commitment, " the company's President Jose Maria
Alvarez-Pallete said in a letter to shareholders.
This story was translated in whole or in part from a
Spanish-language version initially published by EFE Dow Jones, a
partner of Dow Jones & Co.
Write to Carlos Lopez Perea at carlos.perea@dowjones.com
(END) Dow Jones Newswires
January 20, 2020 07:49 ET (12:49 GMT)
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