Telefonica is reportedly in advanced talks to sell its Chilean unit with Liberty Latin America and Claro among bidders, as the company continues its divestment plan to focus on core regions.
El Economista reported, other candidates included Entel, Borealnet and Novator Partners, according to sources speaking to the publication.
Telefonica was working with major banks Citi and Morgan Stanley for over a year to find buyers for its Latin America units. Liberty Latin America struck a deal to acquire Telefonica’s Costa Rican unit which had an enterprise value of $500 million, in July 2020. Millicom was initially in the frame in Costa Rica but the deal collapsed, paving the way for Liberty Latin America.
Telefonica Group announced a massive sweeping restructure of its business in November 2019, unveiling plans to spin-off the majority of its large Central and South American units to focus on core markets Brazil, Germany, Spain, and the UK.