Telefónica announced this Monday an agreement for the sale to KKR of 60% of InfraCo, a company that will be in charge of operating and deploying fiber optic to the home (FTTH) in Chile. The transaction values InfraCo as a whole at $ 1 billion (about € 800 million), which means setting the price of the transaction at about $ 600 million (almost € 500 million).
After the closing of the operation, which will allow the operator to reduce its financial debt by around 400 million euros, Telefónica Chile will maintain a 40% stake, while KKR will acquire 60% of InfraCo, as reported to the National Commission of the Stock Market (CNMV). Telefónica has had its subsidiaries in Latin America for sale for more than a year and in recent months it has been closing various divestment operations in those markets that are no longer a priority for the company (Spain, Brazil, Germany and the United Kingdom), whose funds are used to reduce the company’s significant debt.
As part of the transaction, which will be submitted for consideration by the competition authorities and its closure is expected to be completed in the first half of 2021, Telefónica Chile will sell to InfraCo approximately two million real estate units passed with fiber optics.
Likewise, both will sign a series of contracts for the provision of various services, including a contract for the provision of wholesale connectivity services over InfraCo’s fiber optic network to the Chilean subsidiary of the operator.
In this way, InfraCo will begin its operations with 2 million Past Real Estate Units (UUII), with deployment plans that will complete the 3.5 million units by 2022. This represents more than half of the homes that currently there are in Chile.
The General Director of Finance, Control and Corporate Development of Telefónica SA and head of Latin America, Laura Abasolo, stressed that this operation “will allow accelerating the deployment” of its networks through “an efficient capital structure”, at the same time that allows them to “crystallize the value of our assets and monetize a part of them.” For his part, the CEO of Telefónica Hispanoamérica, Alfonso Gómez Palacios, highlighted that the participation in InfraCo provides them with “substantial long-term flexibility, in a market with enormous future potential.”
Source: ElDiario.es – ElDiario.es by www.eldiario.es.
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