Several companies interested in Telefónica’s business in Central America


According to the Spanish newspaper El Economista, which cites sources familiar with the matter, Millicom, AT&T and Liberty Latin America are among the groups interested in acquiring Telefónica’s business in Central America. The report also mentions Chile’s Entel, but the company denied that information.
Telefónica’s operation in Central America integrates Costa Rica, El Salvador, Guatemala, Nicaragua and Panama. The Spanish firm owns 60% of that subsidiary, with an estimated market price that would range between €700 and € 800 million (between USD 793 and 906 million).
According to El Economista, Millicom would find regulatory obstacles because it already operates in the region (in Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua). However, in Panama, where the group acquired 80% of Cable Onda, it would have the possibility of providing convergent offers.
In addition, the report mentions that both AT&T and Liberty Latin America have the capacity to expand to other countries and always appear as interested in this type of operations.
Although it was initially mentioned in the report of the Spanish media as one of the companies interested in Telefónica’s assets, Entel issued a statement denying that information. “It is not effective that Entel is planning to acquire additional international assets to the operation it already has in Peru,” the company said.
In addition to the business in Central America, Telefónica plans to sell its business in Mexico, whose market price would range between € 1,100 (USD 1,247) and € 1,900 (USD 2,154) million, according to analysts’ estimates. The objective of the company is to reduce its debt. El Economista reported that Telefonica was planning to sell its operations in Mexico and Central America in September.