Spanish multinational Telefónica has reached an agreement to sell its entire stake in its subsidiary Colombia Telecomunicaciones (Coltel), representing 67.5% of its share capital, to Millicom Spain for approximately €368 million.
As reported on the night of March 12 (early March 13 in Spain) to the Spanish National Securities Market Commission (CNMV), the transaction, carried out through its Telefónica Hispanoamérica subsidiary, is valued at $400 million and is subject to the usual price adjustments in such transactions.
The completion of the operation is contingent on specific conditions, including obtaining the necessary regulatory approvals, agreements with the Colombian Ministry of Finance and Public Credit, and arrangements with Empresas Públicas de Medellín (EPM).
Additionally, Millicom announced in a statement that it has also agreed to make an offer to acquire the remaining 32.5% of Coltel’s shares, owned by the Colombian state and other investors, at the same per-share purchase price offered to Telefónica. This move aims to secure 100% ownership of the company.
Telefónica had previously notified in July about a non-binding agreement between its Telefónica Hispanoamérica subsidiary and the Millicom group to explore a potential corporate transaction regarding their assets in Colombia, which could involve a share sale.
According to Telefónica, this sale aligns with the company’s asset portfolio management strategy and its broader objective of gradually reducing exposure in Latin America.
This marks the second major corporate transaction under Telefónica’s new president, Marc Murtra, who replaced José María Álvarez-Pallete on January 18. Earlier in February, Telefónica also reached an agreement to sell its Argentine subsidiary to Telecom Argentina, a Grupo Clarín affiliate, for $1.245 billion (€1.189 billion).
Telefónica’s divestment strategy in its Hispam unit began in 2019, even before the approval of its strategic plan through 2023, which focused on strengthening its core markets—Spain, Germany, the UK, and Brazil—while streamlining operations in Latin America. In addition to the transactions in Argentina and Colombia, the company has also hinted at potential exits from Mexico and Uruguay.
Furthermore, in February, Telefónica announced that its Peruvian subsidiary had entered bankruptcy proceedings to facilitate an «orderly restructuring» of its liabilities, which had faced economic challenges for some time.
In the last fiscal year, Telefónica’s Hispam unit, covering all of Latin America except Brazil, generated €9.032 billion in revenue, marking a 7.8% increase from 2023 and accounting for 22% of the Spanish multinational’s total revenue in 2024.
