Telefonica is reportedly mulling the sale of its Argentinean unit.
Several potential buyers have been mooted, with Spain’s Expansion naming Millicom, which has operations across Latin America, as well as France’s Iliad Group. Telefonica has brought in JPMorgan to advise on the sale.
Headquartered in Spain, Telefonica has been divesting operations in Latin America since 2019, when it agreed to sell its Panama, Costa Rica and Nicaragua units to Millicom. However, this deal fell through, with Liberty Global acquiring the Costa Rican operations the following year. Telefonica’s most recent divestment was its Colombian unit, which was acquired by Millicom last year.
Telefonica’s sell-off of its Latin American units is intended to raise funds for a wider rollout of 5G across its markets. Bloomberg reports that Argentina’s persistent inflation and turbulent economy make the market a clear candidate for a divestment.
The news comes hot on the heels of Telefonica Group’s surprise appointment of Marc Murtra as its new CEO following the departure of José María Álvarez-Pallete after nine years. According to Bloomberg, Murtra will likely announce his long-term strategy for Telefonica before a decision is made on the sale of its Argentina operations.
