Telefonica Sells Minority Stake in Latin American Operations
Published on: 30th Apr 2013
Note -- this news article is more than a year old.
Spain's Telefonica has announced the sale of a 40% stake in its assets in El Salvador, Guatemala, Nicaragua, and Panama for USD500 million, plus up to USD72 million in future performance based payments
The buyer is Corporación Multi Inversiones (CMI), a family-owned multinational corporation.
Telefónica will keep control of the companies, which will be merged into a joint venture.
The implied multiple for the total amount of the transaction means 6.5 times EBITDA 2012 of the companies involved in the operation.
Telefonica confirmed that the sale was part of its plan to pay down the company debt.