Telefónica agrees to sell its 67.5% stake in Colombia Telecom to Millicom for $400 million as part of its strategy to reduce exposure in Hispanoamérica. This transaction awaits regulatory approval. Telefónica offers extensive telecom services across Europe and Latin America, and its stock has seen an 8.55% YTD performance.
Telefónica Hispanoamérica, a subsidiary of Telefónica S.A., has reached an agreement to sell its 67.5% interest in Colombia Telecomunicaciones S.A. E.S.P. BIC to Millicom Spain, S.L. This deal, valued at $400 million, is a strategic step in Telefónica’s effort to minimize its involvement in the Hispanoamérica market, in line with their asset portfolio management policy. The completion of the sale is subject to regulatory approvals in Colombia.
Telefónica is a leading telecommunications corporation that provides an extensive range of services, which include fixed and mobile telephony, broadband, and digital solutions. Its operational footprint spans across Europe and Latin America, emphasizing enhancements in connectivity and promoting digital transformation initiatives.
The year-to-date performance of Telefónica’s stock shows an increase of 8.55%, with an average trading volume of 1,590,084 shares. Currently, the company holds a market capitalization of €24.02 billion. The technical sentiment consensus rating for its stock is categorized as a strong sell, reflecting investor cautiousness.
Telefónica is divesting its stake in Colombia Telecom to Millicom for $400 million, which underscores its strategy to streamline operations in Hispanoamérica. The company remains a significant player in the telecommunications sector, with a focus on driving connectivity and digital innovations while navigating market challenges as indicated by the strong sell consensus rating.
Original Source: www.tipranks.com
