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Telefónica could list up 15% of its Latin American business to reduce debt.

Written by Martin Perez. Posted in News

telefonicaTelefónica could list up 15% of its Latin American business to reduce debt.


The Spanish group is considering placing on the market between 10 and 15 percent of its business in Latin America, this sale could generate more than 4,600 million to reduce debt and strengthen its operations.
According to Reuters news agency, which reported statements by Cesar Alierta, CEO of Telefónica, told the Financial Times.

Alierta told the Financial Times on Monday the next step could be to float a 10-15 percent stake in the Latin American business to "send the message that the sum-of-the-parts are much higher than the valuation of Telefonica".
According to Reuters, the liability of Telefónica arrived last September to 56,000 million Euros. The company plans to reduce its debt to 50,000 million euros by the end of 2012.

Financial Analysts told the news agency that the operation would be complex, "(Latin America) as a whole includes a number of challenged operations and there may be issues with repatriation of cash, hyperflation and currency risk".

By. Martin Perez