Telefonica Sells its Guatemala and El Salvador Units to America Movil


Central American subsidiary unit of Telefonica, Telefonica Centroamerica Inversioines has entered into an agreement with America Movil for the sale of the former’s entire shares of Telefonica Guatemala and 99.3% shares of Telefonica El Salvador. The estimated transaction amount in total is US$925 million.

Parent Group Telefonica has major shares in Telefonica Centroamérica Inversiones, S.L., which is 60% (directly and indirectly) and remaining 40% shares are with Corporación Multi Inversiones.

A banner with words of Telefonica written on it

The aggregate amount of the transaction (enterprise value) for both companies is 648 million US dollars (approximately 570 million euros at the current exchange rate, 293 million of which correspond to Telefónica Guatemala and 277 million to Telefónica El Salvador), an implicit multiple for the total amount of the transaction of 9.7 times the estimated 2018 EBITDA of the two companies. The transaction is expected to generate capital gains before taxes and minorities of around 120 million euros, mainly from Telefónica El Salvador.

Telefonica said that the sale of Telefónica Guatemala has completed today. However, the closing of the sale of Telefónica El Salvador is subject to the applicable regulatory conditions.

Telefonica in a press release said that the current transaction is part of the 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 them to maintain a sustainable and attractive shareholder remuneration.


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