Telefnica is expediting the sale of its Argentine subsidiary, targeting completion by mid-2024.
The Spanish telecom giant has received interest from five potential buyers, including Amrica Mvil, owned by Mexican billionaire Carlos Slim.Confidentiality agreements have been signed to facilitate the sharing of sensitive information, with non-binding offers expected soon.
The deal could value Telefnicas Argentine operations at approximately 1 billion ($1.034 billion), with JPMorgan advising on the process.Amrica Mvil, operating in Argentina under its Claro brand, already competes with Telefnica in mobile and fixed-line services.
While Slims primary markets include Mexico, Brazil, and Colombia, Amrica Mvil also has a strong presence across Latin America.Other interested parties reportedly include Frances Iliad, owned by Xavier Niel, and United States -based Liberty Global, Telefnicas partner in Virgin Media O2 in the UK.
Local Argentine firms such as Grupo Werthein, Grupo Olmos, and Grupo Clarn have also been mentioned as potential bidders.However, regulatory challenges could complicate any deal involving Clarn due to its control of Telecom Argentina, Telefnicas main competitor in the country.
This sale is part of Telefnicas broader strategy to divest assets in Latin America.Telefnica Moves Quickly on Argentina Sale as Slim and Others Show Interest.
(Photo Internet reproduction)Telefnicas Strategic Moves in Latin AmericaIn July 2024, it finalized a $413 million deal to sell its Colombian subsidiary to Millicom.
Meanwhile, its Peruvian operations face significant challenges.
Telefnica has initiated arbitration against Peru at the World Banks ICSID tribunal over a tax dispute dating back to 2002.The company is seeking 1.122 billion ($1.16 billion) in damages from Perus tax authority for alleged arbitrary actions.
These moves underline Telefnicas efforts to streamline its portfolio amid financial and regulatory pressures.They also highlight the companys strategy to reshape its presence in competitive Latin American markets.
Investors and industry players will closely watch these developments for their broader market implications.