Telefónica continues to get rid of its subsidiaries in Latin America to focus on the markets you consider strategic, and has announced the Sale of Otecel, the one in Ecuador, to Millicom Spain. This is the third subsidiary of the operator who stays Millicom in recent months, after buying those of Uruguay and Colombia. Millicom will pay 380 million dollars to keep it.
Uruguay’s is the sixth subsidiary that Telefónica sells in the region, after getting rid of the three mentioned, as well as those of Argentina and Peru. The first is already owned by the Clarín Group, which paid around 1,190 million euros for her, and the second, of Argentina Integra Tec International, which only paid 900,000 euros for her.
According to a statement sent by Telefónica to the CNMV, which confirms the operation, «LTransaction is also subject to certain closing conditions, including obtaining the relevant regulatory approvals. This operation is part of the Telefónica Group Asset Management Policy, and is aligned with its strategy to reduce exposure to Latin America«.
The telephone subsidiary in Ecuador, which operates under the Movistar brand, has about 5 million customers, and has approximately 28% of the market share of the area according to the data of the first quarter of the year. It is the country’s second largest mobile phone operator.
Millicom has stood out in a statement that with this operation its presence in South America is reinforced, and that «The agreement significantly reinforces the regional presence and commercial scope of Millicom, laying the foundations for innovation, digital inclusion and long -term sustained growth. The telecommunications sector of Ecuador, backed by a constant expansion of mobile and broadband services, and a compromised regulatory environment, offers an attractive platform for Millicom to impulse digital transformation«.
He CEO of Millicom, Marcelo BenítezHe stressed that the purchase of OTECEL reflects the long -term confidence of his company in Latiinoamerica. «Ecuador offers a dynamic and growing digital market within a stable and dollarized economy, which makes it an ideal complement to Millicom’s strategy. By expanding our presence in South America, we strengthen our innovation, diversification and creation of long -term value«.
