Spanish
Madrid.- Telefónica plans to reduce its net financial debt to 26,000 million euros after completing the reorganization of its assets in Latin America. This adjustment will be achieved with the sale of its subsidiaries in Ecuador, Uruguay and Colombia, as well as with the purchase of 50% of the fiber company FiBrasil.
Asset Restructuring in the Telefónica Region
The company, which recorded a debt of 27.6 billion euros as of June 30, will reduce its current level by 5.8% once the pending transactions are completed. These operations include the sales of Telefónica Colombia (368 million), Uruguay (389 million) and Ecuador (330 million), along with the acquisition of 50% of FiBrasil for 130 million euros, an operation agreed with the Canadian fund La Caisse. Divestment and guaranteed liquidity plan
Telefónica began its divestment process in Latin America in 2019 to concentrate resources in its main markets: Spain, Germany, United Kingdom and Brazil. Thanks to this strategy, the company's debt was reduced from the 35.228 million recorded in 2020 to levels close to 26,000 million, with sufficient liquidity to cover debt maturities for the next three years.
In recent months, the company also closed the sales of its subsidiaries in Argentina and Peru, which have already been completed. With operations pending authorization in Ecuador, Uruguay, and Colombia, the company seeks to consolidate its presence in strategic markets and optimize its operational structure. Telefónica's new roadmap will be presented at the end of the year and will focus on consolidation and operational efficiency, maintaining a focus on reducing leverage and improving competitiveness.
Asset Restructuring in the Telefónica Region
The company, which recorded a debt of 27.6 billion euros as of June 30, will reduce its current level by 5.8% once the pending transactions are completed. These operations include the sales of Telefónica Colombia (368 million), Uruguay (389 million) and Ecuador (330 million), along with the acquisition of 50% of FiBrasil for 130 million euros, an operation agreed with the Canadian fund La Caisse. Divestment and guaranteed liquidity plan
Telefónica began its divestment process in Latin America in 2019 to concentrate resources in its main markets: Spain, Germany, United Kingdom and Brazil. Thanks to this strategy, the company's debt was reduced from the 35.228 million recorded in 2020 to levels close to 26,000 million, with sufficient liquidity to cover debt maturities for the next three years.
Regional Consolidation Strategy
Telefónica's president, Marc Murtra, highlighted that these transactions, valued at 3 billion euros, strengthen the investment capacity in priority markets. Murtra emphasized that the goal is to build a more agile and competitive organization, without compromising the level of net debt.
In recent months, the company also closed the sales of its subsidiaries in Argentina and Peru, which have already been completed. With operations pending authorization in Ecuador, Uruguay, and Colombia, the company seeks to consolidate its presence in strategic markets and optimize its operational structure. Telefónica's new roadmap will be presented at the end of the year and will focus on consolidation and operational efficiency, maintaining a focus on reducing leverage and improving competitiveness.
