Telefonica sells fibre in Peru to cut debt

Telefonica sells fibre in Peru to cut debt

Telefonica announced it will sell off shares in its Peruvian fibre optic unit PangeaCo in a move that will shave €200 million off its debt pile, and continue its asset-selling strategy.

Reuters reported, the Spanish operator group sold a 54% stake to private investment company KKR and 10% to Entel’s local unit, Telefonica will retain 34%. It did not reveal how much the deals were worth, only how much debt it would pay off due to the transaction.

A banking source close to the deal speaking to Reuters valued the entire Peruvian unit at €550 million including debt.

Telefonica has for years sold off assets to cut debt and fund expensive 5G deployments across its footprint.

In a statement KKR revealed, PangeaCo will combine its fibre footprint in Peru with Telefonica and Entel. The investment firm also added it planned to invest $200 million to double PangeaCo’s network to spread coverage to 5.2 million homes by the end of 2026. 

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