Telecom Argentina has financed the operation with two loans totaling 1.118 billion euros
MADRID, 24 (EUROPA PRESS)
Telefónica has sold its subsidiary in Argentina for 1.245 billion dollars (around 1.190 billion euros at the current exchange rate) to Telecom Argentina, controlled by the media group Clarín, according to the information sent by the Spanish operator to the National Securities Market Commission (CNMV) late on Monday.
«Today TLH Holdco, a 100% subsidiary of Telefónica, has sold all the shares it holds in Telefónica Móviles Argentina, representing 99.999625% of its share capital and the entire share capital of its operation in Argentina to Telecom Argentina,» details the communication sent to the CNMV.
This is the first major divestment since Marc Murtra took over the presidency of Telefónica on January 18 and is aligned with the Spanish teleco’s strategy to «gradually reduce» its «exposure to Latin America.»
«The total price for 100% of the shares transferred amounts to 1.245 million US dollars (approximately 1.189 million euros at the current exchange rate). The signing and closing of the transaction took place simultaneously today. This operation is part of the asset portfolio management policy of the Telefónica group and is aligned with its strategy to gradually reduce exposure to Latin America,» the company added.
With this operation, Telecom Argentina will continue to develop the country’s digital infrastructure and «position it among the most advanced in the world,» as valued by the company controlled by the Clarín group in another statement sent to the National Securities Commission (CNV) of Argentina.
«In this way, it ensures the full development of vast sectors of the economy through the total digitalization of networks, enhancing fixed and mobile broadband and accelerating the deployment of fiber optics and 5G,» it adds.
In this regard, Telecom Argentina has financed the purchase of Telefónica Argentina’s subsidiary with two loans totaling 1.170 billion dollars (almost 1.118 billion euros).
Specifically, it is a syndicated loan granted by BBVA, Deutsche Bank, London Branch, and Banco Santander, and another bilateral loan granted by the Industrial and Commercial Bank of China.
Telecom Argentina has also highlighted that with this operation, it will take advantage of the «territorial and customer complementarity» of both companies and the «greater investment capacity,» which will allow its technological solutions and services to «have the same quality for all its customers regardless of their location.»
«This will give the Argentine market international standards and competitive strength in terms of speed, bandwidth, and network reliability. This operation takes place in a context of increasing consolidation of the telecommunications industry in the world, which is experiencing major transformations including the emergence of new transnational actors and technologies, the demand for capacity and the intensive use of networks by large global platforms, and the need to articulate infrastructure and service synergies to meet exponentially increasing traffic,» it added.
The CEO of Telecom Argentina, Roberto Nobile, has emphasized that with this transaction, his company demonstrates its commitment to continue investing in Argentina «within the framework of current macroeconomic conditions, which add certainty and stability to private and competitive investment.»
It should be noted that Telefónica is at a key moment regarding its operations in Latin America, as its subsidiary in Peru has recently filed for bankruptcy and, according to various reports in the press, it is also considering the possibility of selling its businesses in Uruguay, Mexico, and Colombia.
