Colombia aims to sell its stake in Telefonica

The Colombian Government is trying to sell the state’s 32.5% stake in Telefónica’s subsidiary in the country, according to several specialized websites. According to the Spanish newspaper ‘La Información’, the operation is expected to take place ‘in the short or medium term, once an adequate market window is identified’.

Colombia had already tried to sell its stake in the Telefonica’s subsidiary two years ago, in a proposal promoted by Juan Manuel Santos Calderon’s Government, which was the President in the 2010-2018 period. That operation was canceled, as no interested investors were found. Now the context is different, due to the spin-off of the Hispanic American operations implemented by Telefonica at the end of last year, which opened up the possibility of selling those assets.

In November last year, Telefonica announced a new action plan, which includes decoupling its operations in Latin America (not including Brazil) and focusing its business in Brazil, Spain, the United Kingdom and Germany. The announcement was made by Jose Maria Alvarez-Pallete, Executive Chairman of the Telefónica Group through a letter to the entire community of the company, entitled ‘The New Telefonica’, which highlights the creation of an ‘operational spin-off of the business in  several Latin American countries’.