Again in early 2019, after months of hypothesis linking Telefonica to a sale of its Central American operations, the Spanish telecom big agreed to offload all 5 of its items within the area.
By the tip of 2019, the Madrid-based group had unveiled a five-point turnaround technique to overtake its enterprise.
One of many group’s most eye-catching facets of the plan was Telefonica’s determination to spin off its Latin American companies—excluding Brazil.
Then-CEO José María Álvarez-Pallete said:
“The historical past of our firm can’t be understood with out our dedication to Latin America for 30 years, which has made Telefónica a greater firm. We’ve got all the time proven a robust dedication to the area, even in its most troublesome moments … Our operations in Latin America had been the expansion engine of the corporate till a number of years in the past. Nevertheless, the actual circumstances in these markets have had an influence on the enterprise, decreasing its contribution in recent times for various causes and regardless of the big efforts of our native groups, which have all the time proven a robust dedication … With this operational spin-off, Telefónica begins a strategic evaluate of its portfolio in Hispanoamérica with the double goal of modulating the publicity to the area, whereas creating the circumstances to maximise its worth through development, consolidation and doable company transactions.”
Within the wake of the COVID-19 pandemic, Telefonica’s rapid focus in Latin America was on sealing fiber-optic joint ventures in markets resembling Brazil, Chile, Colombia, and Peru. Telefonica sought to pursue “strategic alliances” to cut back the digital divide—and scale back its publicity on the similar time.
In the beginning of 2025, Álvarez-Pallete stepped apart to make method for Marc Murtra. With plenty of divestments both confirmed or rumored in current weeks, Telefonica’s unique plan to cut back its publicity within the area has lastly gathered tempo.
Right now, we study the items on the chopping block and consider Telefonica’s quickly shrinking portfolio.
Argentina
Unit: Telefonica Argentina (Movistar)
Cellular Subscriptions (December 2024): 16.15 million
Purchaser: Telecom Argentina (Private)
Sale Agreed: February 2025
Worth: $1.245 billion
In February 2025, the Spanish group agreed to promote Telefonica Argentina (Movistar) to rival home operator Telecom Argentina (Private) in a deal valued at $1.245 billion.
Each events indicated that the deal was signed and closed on February 24. Nevertheless, Telecom didn’t full submitting the required info with the Nationwide Communications Company (Ente Nacional de Comunicaciones, ENACOM) and the Nationwide Fee for Defence of Competitors (Comision Nacional de Defensa de la Competencia, CNDC) till the next month.
No sooner had the deal been introduced than President Javier Milei’s authorities issued a press release confirming it might consider the tie-up, which might put 70% of the nation’s telecom sector below the management of 1 group.
In response to native information studies, Milei—who prides himself on chopping purple tape and selling free markets—has taken a private curiosity within the deal due to his connections.
In response to native information studies, Milei—who prides himself on chopping purple tape and selling free markets—has taken a private curiosity within the deal due to his connections. His overseas minister, Gerardo Werthein, is a cousin to Dario Werthein, who leads Grupo Werthein—the corporate that was reportedly outbid for Telefonica’s belongings.
Grupo Werthein, which owns DirecTV items throughout Latin America, has thought-about coming into the native cellular sector through an MVNO settlement. The group seeks to enhance its present pay-TV/ISP enterprise in Argentina.
Colombia
Unit: Colombia Telecomunicaciones (Movistar Colombia)
Cellular Subscriptions (December 2024): 20.595 million
Purchaser: Millicom Spain, a subsidiary of Millicom Worldwide Mobile (MIC)
Sale Agreed: March 2025
Valuation: $400 million (67.5% stake); worth may drop to $362 million after changes
Earlier this month, Telefonica reached an settlement to promote its 67.5% stake in Colombia Telecomunicaciones (Movistar Colombia) to Millicom Worldwide Mobile (MIC)—the mum or dad firm of Tigo Colombia—for $400 million.
The latter firm will purchase the shareholding through its Millicom Spain subsidiary. The 2 events word that the ultimate worth of the deal “might be topic to the standard worth changes for such a transaction” and will drop to $362 million.
The deal is topic to sure closing circumstances, together with the related regulatory approvals and particular agreements with Colombia’s Ministry of Finance and Public Credit score and Empresas Publicas de Medellin (EPM).
In July 2024, Millicom mentioned it supposed to purchase the federal government’s 32.5% stake in Movistar Colombia on the similar buy worth per share supplied to Telefonica. Moreover, Millicom intends to accumulate EPM’s 50% curiosity in Tigo Colombia for a “comparable valuation a number of.”
When the offers are full and Telefonica’s belongings are merged with these of Tigo Colombia, the enlarged entity will boast a 43% market share, bringing it nearer according to dominant cellular participant Claro.
Mexico
Unit: Telefonica Moviles Mexico (Movistar)
Cellular Subscriptions (December 2024): 21.500 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: $2 billion
In February 2025, Telefonica reportedly employed funding financial institution JPMorgan to promote its subsidiary Telefonica Moviles Mexico (Movistar). Sources near the matter indicated that the group seeks to hold out the sale earlier than its annual shareholders assembly, which is more likely to be held in April or Could.
Regardless of widespread sale hypothesis, no potential patrons have been named thus far.
TeleGeography notes that in September 2018, it was reported that Telefonica was contemplating the divestment of its Mexican division, with valuations ranging as much as EUR1.9 billion ($2 billion). At that juncture, the unit piqued the curiosity of Cerberus Capital Administration, however the funding agency was unwilling to match Telefonica’s valuation of the enterprise.
Uruguay
Unit: Telefonica Moviles Uruguay (Movistar)
Cellular Subscriptions (December 2024): 1.38 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: $350 million–$400 million
In February 2025—amid a flurry of gross sales rumors—it was urged that Telefonica was searching for a purchaser for its Uruguayan enterprise. Sources indicated that the way forward for the unit was intently linked to the destiny of Telefonica’s Argentine subsidiary as a result of shut relationship between the 2 neighboring international locations.
With the Argentina sale already confirmed, it appears that evidently the times of the Uruguayan unit are numbered.
With the Argentina sale already confirmed, it appears that evidently the times of the Uruguayan unit are numbered. Movistar Uruguay is claimed to be valued at between $350 million and $400 million—according to a suggestion that Telefonica allegedly obtained greater than three years in the past from a consortium comprising Argentine ISP Tremendous, businessman Edgardo Novick, and an unnamed U.S. fund.
Native information studies indicated that Argentina’s media conglomerate Grupo Clarin is the lead bidder for Movistar this time round. That mentioned, Telecom Argentina—which already gives pay-TV companies in Uruguay—may be tempted to strike a deal.
Peru
Unit: Telefonica del Peru (Movistar)
Cellular Subscriptions (December 2024): 11.408 million
Purchaser: TBC
Sale Agreed: TBC
Valuation: TBC
In February 2025, Telefonica del Peru (TdP, working below the Movistar model) introduced that it might request an Unusual Chapter Process (Procedimiento Concursal Ordinario, PCO) earlier than the Nationwide Institute for the Defence of Free Competitors and the Safety of Mental Property (Instituto Nacional de Defensa de la Competencia y de la Proteccion de la Propiedad Intelectual, Indecopi) to restructure its monetary obligations with a view to guaranteeing uninterrupted companies to its prospects.
To clarify the corporate’s determination, TdP CEO Elena Maestre said:
“After evaluating totally different options to make sure the corporate’s monetary stability, we got here to the conclusion that voluntarily becoming a member of the PCO is the easiest way to guard the supply of telecommunications companies to Peruvians.”
Information studies indicated that the telco sought to barter a sale as its most well-liked plan of action, however no appropriate patrons may very well be discovered. Telefonica is conserving its choices open, nevertheless, mandating Rothschild to supervise any takeover gives for its Peruvian subsidiary.
With the telco allegedly $1.358 billion in debt—of which roughly half is owed to the Peruvian treasury—any purchaser must conform to tackle TdP’s debt mountain earlier than arranging a deal. As such, the concept of a debt-for-equity swap has been mooted, permitting the corporate’s collectors to imagine management of the enterprise.
Any Different Enterprise?
Chile, Ecuador, and Venezuela have been conspicuous by their absence amid widespread studies of asset gross sales throughout Latin America.
Again in January 2021, studies emerged that Telefonica was in superior talks to promote Telefonica Moviles Chile (Movistar) for an undisclosed price, though any such deal failed to come back to fruition. At that juncture, Liberty Latin America (LLA)—the mum or dad firm of Chilean ISP VTR—and rival full-service supplier Claro Chile had been listed as the primary candidates for buying the telco, though Entel and WOM weren’t dominated out.
In the meantime, in Ecuador, the Company for Regulation & Management of Telecoms (ARCOTEL) briefly prolonged Telefonica Ecuador (Otecel)’s cellular concession for a sixth time in February 2025 whereas the events stay in negotiations over its renewal.
In response to the ARCOTEL decision issued on February 14, the newest extension might be legitimate “till the brand new enabling title is signed, or it’s determined to not renew the concession contract; circumstances that have to be met inside three months (i.e. earlier than 15 Could 2025), which if mandatory might be prolonged by settlement of the events below the identical circumstances as the current extension.” In 2019, the corporate was valued at EUR800 million ($881.8 million) amid takeover curiosity, however it stays to be seen whether or not it would pique anybody’s curiosity once more.
Lastly, in Venezuela—a market that holds restricted enchantment for worldwide traders nowadays—Telefonica has given no indication that it’s planning an exit. In January 2025, Telefonica Venezolana (Movistar) bid $37 million for a 2×20MHz block of 5G-suitable spectrum within the 2.5GHz band forward of a deliberate 5G rollout. Certainly, the corporate claimed that the deployment exercise will kind a part of a two-year $500 million funding program.
