Spanish telecommunications company, Telefónica has agreed to sell 67.5% of its Colombian subsidiary, Coltel, which operates under the Movistar brand, to Millicom for approximately €368 million (£318 million)
In addition to this acquisition, Millicom has expressed interest in purchasing the remaining 32.5% of Coltel, which is currently held by the Colombian government and other investors. If successful, this move would grant Millicom full control of the telecom company, further strengthening its presence in Colombia's telecommunications sector.
Millicom CEO Marcelo Benítez highlighted the significance of the transaction, stating: "This deal enhances our position in Colombia and reflects our commitment to expanding connectivity, accelerating digital transformation, and supporting the country's growth and competitiveness."
This sale aligns with Telefónica's ongoing strategy to reduce its exposure in Latin America, which commenced in 2019. The company has since divested several assets across the region. Earlier this year, Telefónica sold its Argentine subsidiary to rival Telecom Argentina for $1.245 billion (£1.03 billion). News: Telefonica sells Argentina unit for $1.25 billion
The sale of Telefónica Argentina is currently under review by Argentina’s telecommunications watchdog, ENACOM, and the National Commission for the Defence of Competition (CNDC). Regulatory authorities have emphasised the need for market competition and are closely monitoring the deal to prevent monopolistic structures.
Telefónica is reportedly considering the sale of its Peruvian subsidiary in the coming months, in what could be one of the most significant decisions the company has made in South America in recent decades. Analysis: Telefónica's fibre venture setback amid pressure on Peru sale & Argentina exit talks
