Telefonica cuts debt by 200m euros after selling stake in Colombia unit
- The operation values the fibre network in Colombia at $500 million
MADRID: Spanish telecom operator Telefonica said on Saturday it would cut its debt by 200 million euros ($169 million) after selling a controlling stake in its optic fibre network in Colombia to buyout fund KKR.
The Spanish company plans to spin off the unit and keep a 40% stake, while a local unit of KKR would take the rest.
The operation values the fibre network in Colombia at $500 million.
Telefonica sells mobile phone masts in Europe, Latin America for 7.7bn euros
KKR intends to expand the coverage to 4.3 million households in the country by 2024 from 1.2 million at the moment, the buyout fund said in a statement.
The transaction still requires regulatory approvals, both companies said.
The sale is part of a wider Telefonica plan to reduce its debt by selling assets.
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