Madrid telefonica. Credit: JJFARQ, Shutterstock.
Telefónica has agreed to sell its Ecuadorian subsidiary to Millicom Spain for 330 million euros and continues its strategic retreat from Latin America under Chair Marc Murtra.
Otecel, which operates as Movistar Ecuador and owns 28% of the local mobile market with 5 million customers, will be announced late Friday and will be subject to regulatory approval.
In a statement, Telefónica said the deal was “part of a plan to optimize the portfolio, gradually reduce exposure in Latin America, focusing on key markets and creating sustainable value (quoted). Chronicle).
Telefónica’s 2.3 billion euro Latin America exit plan
Since Murtra became president, Telefónica has sold 2.333 billion euros on Latin American assets, including:
- Argentina: 11.9 billion euros (Clarin Group)
- Peru: 1.2 billion euros underwrite the debt in addition to 900,000 euros
- Uruguay: 389 million euros (Millicom)
- Colombia: 368 million euros (Millicom)
- Ecuador: 330 million euros (Millicom)
Millicom CEO Marcelo Benítez said the deal reflects “long-term trust in Latin America” and calls Ecuador “a dynamic and growing digital market in a stable, dollarized economy.”
Spanish banks are cautious. Renta 4 maintained its “hold” recommendation, noting that the deal could pave the way for more exits, such as Chile and Mexico. Bankinter’s Elena Fernández-Trapiella said Latin America is a “burden” with low profit margins.
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