Telefonica SA Sale of Data Centers (3383Y)
May 08 2019 - 2:09AM
UK Regulatory
TIDMTDE
RNS Number : 3383Y
Telefonica SA
08 May 2019
TELEFÓNICA, S.A. ("Telefónica") in compliance with the
Securities Market legislation, hereby communicates the
following
INSIDE INFORMATION
Today, Telefónica has reached an agreement for the sale of a
portfolio of 11 Data Centers located in 7 jurisdictions (Spain,
Brazil, USA, Mexico, Peru, Chile and Argentina) with a company
controlled by Asterion Industrial Partners SGEIC for a total amount
of 550 million euros.
The transaction is expected to generate capital gains before
taxes and non-controlling interests of around 260 million
euros.
The sale agreement includes the signing of a contract for the
provision of housing services to the Telefónica Group, which
guarantees that Telefónica will continue to provide services to its
clients in those Data Centers with the same quality and the same
conditions.
The closing of the transaction will take place in a period of
approximately two months, except for four Data Centers where the
effective transfer is subject to several authorizations and
administrative procedures.
This transaction is part of the Telefónica Group 's asset
portfolio management policy based on a strategy of value creation,
improving return on capital and strategic positioning. It also
complements the objective of organic debt reduction and
strengthening the balance sheet in a growing cash flow scenario,
which allows us to maintain a sustainable and attractive
shareholder remuneration.
Madrid, May 8, 2019
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contact rns@lseg.com or visit www.rns.com.
END
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